@Kris Haskins  - I've just read the actual indictment fully:http://mortgagefraudblog.com/wp-content/uploads/20...It would appear that the 5 defendants involved, actively & knowingly participated in the creation & submission of false & fraudulent documentation to secure the short sales - 9 counts of fraud in total, and it would further appear that they were aware of their actions.There also seem to be issues with "declared relationships" (which is interesting as it could pose problems for wholesalers with relationships with realtors finding the short sales on their behalf).

In my experience one in a hundred is a major problem with either physical issues or you wind up stuck in the middle of a lawsuit between the foreclosed former owner and their lender (I spent over $170K defending one of these).  

I have taken 5 classes with Champions School of Real Estate.

It would probably cost about $10k to try to defend in Federal Court and with such a small amount invested would most likely not be worth trying to defend on your end.

Insurance mostly provides payment of legal expenses to defend you.

First, if the defendant either shows up or sends an attorney to delay or contest the sale, you are present to observe. 

But don't close your account and come back in and try to defend it.

Account Closed Many tax advisors will add a given umber per year that they feel they can justify and defend. 

Criminal liens can mean either (1) a fine was levied for a criminal activity in which the defendant was found guilty and since the fine was not paid the court perfected the fine and file a lien with the county in which the defendant's property is located or (2) the property was declared dangerous, an order was issued to remedy, the property owner did not remedy, and the county in which the property is located regards this as a criminal offense.If (1) then it needs to be paid off as would any other lien.

In addition to the homeowner, the defendant is also Bank of America.