@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).

as @Christopher Brainard  states beside breaking the law.NV is really really tough on inforcing commercial code laws.. lending laws RE laws.. gambling laws. not a state to fool withand the market there is so strong and hot it pretty tough go.but if you think this is how to make money then  you need to line up your transactional funding close then resell.. that's where the wholesaling industry ( can't call it that) but that's were this is all going.

It is definitely a gamble. 

Fraudulent claims would be a pretty bad way to start a reputation.

Will Sifert you are probably correct about that owner / investor being fraudulent.

or do no fix up and sell as is, but make sure you sell after the period the date specified and I would bare minim wait 30 days before resellingThe bank's have considered short sale flipping to be fraudulent transactions and if you fail to disclose them to the bank they can seek legal action.

However, it appears they submitted incorrect paperwork, and what they did submit was fraudulent, incomplete, and misleading.

Unless they are turn-key costs, I wouldn't gamble especially at that price point.

It is flat out gambling.

The appraisers are extremely conservative these days, since they really got reputations burned in the days when their estimates backed up out of whack or fraudulent mortgages.