Scam Artists Exploiting Surge of Short Sales to Commit Fraud

Plunging home values in many housing markets across the country have led to increased short sales (sales in which a home sells for less than the amount owed on the mortgage), and some scam artists are using the spike in short sales to commit fraud. California-based CoreLogic, a firm that provides research, analysis and business services to real estate and other industries, is reporting that lenders need to be on the lookout for short sale fraud. CoreLogic reports that nearly two percent (1.9) of all short sales in the U.S. over the last two years are fraudulent. They estimate at least 15,000 cases of short sale fraud, or approximately one in every 53 sales. There are many variations on this scam, but they all involve collusion between unscrupulous agents and buyers who agree to sell a home below current market value and quickly resell the home at a profit. CoreLogic reports that in most cases, the crooked agent has a higher offer for the home from a lender that he or she “overlooks” in order to make a bigger profit by selling at a lower price to another buyer. In this arrangement, the agent makes money, the buyer saves money and the lender is the fraud victim that takes a loss of tens of thousands of dollars. Short sales help homeowners struggling to meet their mortgage obligations by allowing them to move on, and these transactions help lenders by attenuating financial losses and removing the liabilities of a property sitting empty for months on end. If you’ve been considering the advantages of Louisville short sales for your next home or as an investment property, contact Louisville Properties today at 502.744.9504. No scams, we promise.

Join The Discussion

James Powell

Jim Powell has over 20 years of experience buying and selling luxury real estate in Louisville, KY and Managing over hundreds or rental properties across the city.
Jim Powell (License #191501)

Lauren Ghanavatian

Lauren Ghanavatian attended Assumption High School and the University of Louisville. Growing up in Louisville gave her a sense of the unique and diverse communities this city has to offer.

Contact us

  • This field is for validation purposes and should be left unchanged.



Louisville Properties is a full service Louisville Real Estate Company for buyers and sellers of real estate. We offer the following services
3418 Frankfort Ave #100 Louisville, KY 40207 Louisville, KY 40207
United States
Phone: 1-502-744-9504

Compare listings