The Strangest Thing Happened...

[Jim Iorio]

I heard of the strangest thing the other day, and I'm wondering if anyone else has seen this done before...

A fellow wholesaler in my market just did a deal the other day that went down like this: She went out a property that would have needed to be a short sale in order to be a good deal.  She signed a contract with the seller for the Short Sale price.  She didn't negotiate the short sale, she just signed the contract with the seller as something to submit to the bank.  Then, a cash buyer just bought that contract from her without the short sale ever being negotiated.  He didn't know if he could get the bank to take that purchase price, didn't know if he could make any money, he just signed a check for $15000 for a piece of paper that was essentially worthless.  Then, to top it all off, the guy took his sweet time in getting around to negotiating the short sale, and the property went into foreclosure.  Has anyone seen anything like this happen before?  It seems like a new, totally risk-free way to approach short sales O:-)