As short sales are significant in foreclosure prevention, fraud concerns abound. Appraisal fraud to flipping, the short-sale process poses several possible areas of fraud where the servicer must take preventative action. Included but not limited to the following:
– Focus on making sure it’s an arm’s-length transaction– Search deeds on a regular basis
– Pull titles six months after closing
– Work with capable and/or short sale certified Realtors
– Sell for market value