Short sale investors referred to as organized crime groups by Fannie and Freddie???

[Manny Cirino]

So I like to ready different real estate article on a daily bases from forbes, yahoo, msn, realtor.com etc... Today I came across the most ridiculous article! It simply states that Fannie and Freddie see short sale flips as mortgage scams and that the group of investors, realtors, appraisers etc... That partake in these transactions are organized crime groups. WTF! Sorry for my language by it's crazy how Investors are clearing the lending industries mess and are being seen as scam artist because the profit in one deals is higher than a school teachers salary. Here is the link I would love to here everyone's opinion on this article.

http://realestate.msn.com/more-short-sales-bring-new-scam-flopping?wa=wsignin1.0

[Account Closed]

IMO, if the banks agree to sell a property at short sale to buyer one at a certain price, what difference does it make if buyer 1 sells it to buyer 2 for a profit?

If the banks are unhappy with buyer 1's price, don't accept the short sale offer. If they are happy, then don't worry about what buyer 1 does with the property.

I understand in some circumstances there can be influence by parties involved, but the reality of the situation is the bank fully accepted buyer 1's offer....what buyer 1 does with the property, whether he keeps it or sells it for a 'profit' is not of the banks concern once they accept buyer 1's offer.

If you sell your car to a guy and after negotiation you agree to a sales price of $5000 and the guy turns around and sells it to a prearranged buyer for $6500, is it fraud that the guy didn't bring his buyer directly to you? No. You were happy with the $5000 offer and accepted it. If you want the $6500 offer, reject the $5000 and keep on holding the property...watch the costs add up...