To use funds as otherwise agreed would be fraudulent.

I have seen questionable comps, fraudulent leases that are above market, unrealistic appraisals and bad property managers ruin people's investments.

I'm guessing they won't agree.They're setting you up as a straw buyer in a fraudulent transaction.

What they ALL fail to mention or specify is that not ALL short sale transactions are fraudulent, not all investors are crooks and of those that are, they are a small minority in which the guilty party failed to properly disclose and had full intent at the start.If you as an investor negotiate to buy a property for under market value and disclose to the short sale lender your intent to immediately re-sell for a profit, then no fraud occured and no laws were broken.

So she sold something she didn't own and waiting till the end of the term to make a stink.If the daughter were to challenge the deal she'd put her mom at jeopardy of being sued for fraudulently selling something she didn't own.On top of that, the attorney for the occupants told me he did some digging and found out the mom/daughter combo had done this before on another property......I was wondering why the deal was so good..lol.

And people shouldn't file fraudulent claims or pad their claims to make up their deductible either.

No title company will ever buy that, even if the loan was fraudulent, they will want it cleared off or see a court decree filed.Speculation about what will happen can be fun, I won't be banking on any borrower getting ahead out of all of this.

Otherwise, the sale can be set aside as a fraudulent conveyance by the bankruptcy trustee.

I guess I'll do as you suggested and go sit in at a few sheriff sales before I actually bid because I dont want to take a gamble on a dud property.

You can see similar economics at top law firms, where associates work 80 or more hours per week for several years for the 10% chance of making partner with a 7-figure income.It appears as if some people have a natural tendency to gamble and these are the ones who decide to start businesses.