September 13, 2010
Short Sale Fraud Warning
California Real Estate Commissioner Jeff Davi has requested that DFI assist him with getting out an important message about the continuing and evolving threat of short sale fraud. Please take a moment to read Commissioner Davi's message below, and the attached letter (PDF) and notice (PDF) from the California Department of Real Estate.
A Time for Collaboration and Cooperation
The influx of short sale complaints to the Department of Real Estate (DRE) involving fraudulent schemes is disconcerting not only to the public and real estate market, but should be to the lenders, servicers, and GSEs upon whom these schemes are perpetrated.
Short sale fraud is not only on the rise but the subterfuge continues to transform and evolve. In a majority of the short sale fraud cases, it is the lender that has been the victim and suffered the financial losses.
While it is difficult to identify every variation of the many fraudulent scams, DRE has published warnings of some of the more predominate schemes that we have seen or learned of through legitimate industry reports. Please review the enclosed letter from me and the short sale fraud alert notice for additional information.
I would like to thank you for cooperation as we collectively address this very important matter and express my appreciation to the Department of Financial Institutions for their assistance in providing you with this very important industry alert.
Real Estate Commissioner