Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Buy My Short Sale Then Sign It Back To Me Or Not

Why can’t I cash in money from my 401K and give it to a friend to buy my property which is in foreclosure with no sale date; then have the friend sign the deed back over to me? What difference does it make if I know the buyer or if I don’t?



Hello Wendy,

The lender will require that the transaction be at Arm’s Length and will require an affidavit similar to this one now required to be notarized on all Freddie Mac short sales. Take note of two of the following provisions:

2. The Parties acknowledge and agree that the Subject Property must be sold through an Arm’s Length Transaction. An “Arm’s Length Transaction” is a transaction between parties who are independent of one another, and unrelated by family, marriage or commercial enterprise, other than the purchase and sale of the mortgaged premises between the Buyer(s) and the Seller(s) that is the specific subject of the proposed Short Sale.

3. The Parties acknowledge and agree that there are no agreements, understandings or contracts between the parties that the Seller will remain in the mortgaged premises as a tenant or later obtain title or ownership of the mortgaged premises, except to the extent that the Seller is permitted to remain as a tenant on the mortgaged premises for a short term, as is common and customary in the market but no longer than ninety (90) days, in order to facilitate relocation.

So, the shorting lender makes such an arrangement unlawful.

Thanks for the questions and hope this helps.


Deficiency Judgments Are Granted By Florida Courts

702.06 Deficiency decree; common-law suit to recover deficiency.—In all suits for the foreclosure of mortgages heretofore or hereafter executed the entry of a deficiency decree for any portion of a deficiency, should one exist, shall be within the sound judicial discretion of the court, but the complainant shall also have the right to sue at common law to recover such deficiency, provided no suit at law to recover such deficiency shall be maintained against the original mortgagor in cases where the mortgage is for the purchase price of the property involved and where the original mortgagee becomes the purchaser thereof at foreclosure sale and also is granted a deficiency decree against the original mortgagor.

Florida Deficiency Judgment

Note : It is possible to file Bankruptcy to wipe out the Deficiency Judgment. Consult a BK lawyer.
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