A short sale flip is nothing more than the process of an investor purchasing a short sale property and reselling it immediately for a cash profit. The transaction occurs when a buyer (investor) purchases a short sale from a seller, gets lender approval on a price, and then re sells the home for a profit before it has even closed escrow! This is often done by using a Title & Escrow Company who will do a “double escrow”. This can be “legal” but in most minds, certainly not ethical.
Title companies and real estate brokers are up in arms questioning the ethics and legality of such transactions. In the ultimate analysis, the investor is the only player who stands to gain. Title companies and realtors feel in such type of transactions, the bank and the seller are being defrauded. They are of the opinion that full disclosure to the seller and lender about resale of the property should be mandatory. But with the law as it stands today, there is no overt evidence of fraud. However, a flip sale will inevitably end up in court someday, when a jury will have to decide whether or not to prick the bubble.
Short Sales in the Bay Area
Many Bay Area homeowners have felt the heat of the economic depression. Some are facing imminent foreclosure of their homes and properties. A short sale is a preferred option because the negative impact on an individual’s credit rating is not as intense.
Rick Smith a Bay Area realtor is a skilled and experienced negotiator with experience in short sale transactions. He has lived and worked in the Bay Area all his life and has an equation with banks and lending institutions. If you are facing foreclosure, visit Rick Smith’s website at www.ricksmithrealtor.com and explore the advantages of a short sale alternative.
