How illegal is this on a scale of 1 to Bernie madoff

[Robin Casper]

So funny story I thought I’d share. I recently put in an offer on a short sale house and when talking to the listing agent he said “man I love these short sales!” So I said oh really why? And he said because he rents them out while they’re in the short sale process. So I asked him who gets the money him or the bank? And he said he keeps it all! And that he had 9 other short sale properties that he was renting out! So this agent is renting out a property he doesn’t even own and meanwhile the bank (the actual owner) is paying taxes, insurance, maintenance etc. this guy is collecting rent free and clear without having to pay a mortgage or anything! Times 9 properties. I guess what shocked me most is how he tells complete strangers over the phone about his little side gig. My offer was denied by the bank but it led me to wonder if he even submitted the offer...because if the house sells then he doesn’t collect his rent $ anymore! So BiggerPockets, on a scale of 1-Bernie Madoff, how illegal is this? And if it’s not then I’m getting my real estate license ASAP.

[Matthew Irish-Jones]

This is Madoff, Clayton Morris, and the Fyre festival wrapped into one...