Im a realtor and have ss approved at 340 but have offer at 360 can i do double escrow? In Ca

[Kevin M.]

i have a short sale approved at 340 but have a offer at 360.. can i do double escrow?

[Bill Gulley]

Good morning all,

Bank fraud and embezzlement, along with prudent bank practicies are at the top of the list for any bank examiner. Fraud and embezzlement are the main issues that bank examiners are inside any bank, if it were simply an accounting function, that could be accomplished off site.

When I was a bank examiner for FDIC, that's what I did, looked for details in banking operations that had possibilities for fraud or embezzlement. If evidence was found an examiner can detain the violator, bring an arrest and prosecution.

What I'm seeing here is that Realtors are getting caught up in defining words and their agency relationships in a particular type of transaction, which is really all irrelevant. Use the same arguments when the DEA Agent arrests you along with your client because your client had drugs in the trunk, totally irrelevant.

As to defining contracts or law, it is the spirit and intent that prevails and what a reasonable perrson is expected to do or not do.

What I was pointing out above are basic tests to determine fraud.
For fraud to exist, there has to be an intentional act, the failure to disclose information or an ommission, or providing false information.
There also must exist the possibility of financial gain or benefit from that ommission or information given.

Additionally, lying or misleading a bank officer to gain any benefit is another violation of federal law. If you ever wondered if those recorded calls were really for training purposes, think again.

Signed contracts and disclosures are evidence of intent and will be viewed as to the meaning by a reasonable person as well as to the written word, with greater weight given to the meaning. If you rely soley on the words used and not the intent, you are treading on thin ice.

As to this issue, I would not look at all to the agent's relationship with the seller, I know what those duties are, but it is irrelevant.

The agent knows that the bank is involved by allowing a reduction of the mortgage to allow a sale.

The agent is aware that there is another offer at a higher price which means the possibility that the bank may have less to write off or lose, or more to gain. Under federal law anyone who has dealings with a bank or who is in a position to influence any transaction of a bank has a legal obligation to act in good faith and not deceive or ommit any fact or information which may influence the bank action.

The agent decides to withhold that higher offer, regardless of his reason, it is an ommission of information. An intentional act.

The financial gain to the agent is clear, two commissions, one at the bank's price and the other to the next buyer at a higher price. Now we have an issue of bank fruad by a thrid party related to the transaction.

Attempting to place your client in front of you and defend your actions under agency law with that client won't cut it. If I had discovered such a transaction I would persue charges against the agent, broker and the seller, anyone who had knowledge of the higher offer on the seller's side. That agent is not the only one with a copy of that offer. The selling agent and broker have a copy as well as any multiple listing service.

So, a simple phone call to the MLS and asking if any other offers exist for 1226 E. Walnut might cause a problem for that agent. There are checks and balances built into the system and I doubt that alone, no one will out smart the system.