Specialist · MA · Member since 2009 · 858 posts · 306 votes
"REO transaction volume is more than twice that of short sales with 120,000 REO sales in the second quarter of 2010."
http://www.corelogic.com/About-Us/News/CoreLogic-Releases-Mortgage-Fraud-Trends-Report-Update.aspx
"By November 2010 one in every 24 REO sale transactions, or 4.2% were part of an “egregious resale and therefore deemed risky.†It is way higher than the 1% fraud risk that is considered the acceptable fraud rate."
I find this so interesting. First, how are they defining what gets FLAGGED. Just because there is a quick resale, doesn't necessarily mean it was egregious right?
So, people buy in bulk REO and suddenly there is more fraud. No, there just is MORE REO's and because the number aligns.
Let's keep in mind Corelogic gets their salary from lenders buying their fraud protection program.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
The "F" word gets tossed around all too often and is a difficult thing to prove. You must be able to prove intent.
That said, a quick sale has NOTHING to do with fraud. Fraud can happen on delas that are re-sold years later. Fraud can happen on deals that are never sold.
Due to the large number of REO properties, it stands to reason that the % of all sales are growing as far as REO's are concerned. I have flipped an REO in 63 days from start to finish. There was no fraud in the transaction. I bought low, fixed in 2 weeks, got offer first week of listing and had 45 day escrow.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
The "F" word gets tossed around all too often and is a difficult thing to prove. You must be able to prove intent.
That said, a quick sale has NOTHING to do with fraud. Fraud can happen on delas that are re-sold years later. Fraud can happen on deals that are never sold.
Due to the large number of REO properties, it stands to reason that the % of all sales are growing as far as REO's are concerned. I have flipped an REO in 63 days from start to finish. There was no fraud in the transaction. I bought low, fixed in 2 weeks, got offer first week of listing and had 45 day escrow.