US housing data aggregator CoreLogic is now offering a short sale fraud detection tool that monitors the property even after the sale is completed. Nearly two weeks ago, CoreLogic announced that short sales will unnecessarily cost lenders $310m in 2010. “Today lenders, to a higher point than ever before, are dealing with foreclosure and dealing with borrowers,” said VP of Fraud Solutions at CoreLogic, Frank McKenna, “and with an estimated 400,000 short sales to be negotiated with real estate agents, there needed to be a way to make sure all offers on a property are disclosed.” The new service allows lenders to receive alerts on potentially risky lending and even closed short sale transactions to minimize unnecessary losses related to fraud and property underpricing, an example of which is in the below graph: McKenna said the risk of this flopping fraud — giving a low ball offer, closing, then selling again at a higher price — is becoming so pervasive that some lenders are considering putting in place requirements to prevent property resales for 90 days after closing. The new CoreLogic Short Sale Monitoring Solution alerts lenders whenever a higher bid is made, but not necessarily disclosed by an agent. Once the short sale is closed, the monitor still keeps tabs to report any bids for resale. Freddie Mac reported that it has seen short payoff volume grow more than 1,000 percent, and that the upward trend in volume leaves the market ripe for incidences of short sale payoff fraud. Write to Jacob Gaffney.
CoreLogic Launches Short Sale Fraud Watchdog Technology
Most Popular Articles
Latest Articles
Download these 9 real estate prospecting letter templates that actually work
Build your business with direct mail using these expert-written real estate prospecting letter templates.
-
14 powerful tips to master networking as an introvert in real estate
-
Fintech startup Hitch rolls out white-label HELOC product
-
6 best real estate schools in Washington (WA) for 2024
-
Rick Roque departs CrossCountry Mortgage to join Sierra Pacific
-
Brokerage executives double down on their lead generation strategies