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Right now there has been plenty of talk lately regarding short sale fraud. Understandably an appealing topic, many of the particular recent discussion centers around a recent Corelogic report suggesting you in every two hundred short sale across the actual United States are generally "fairly suspicious." Even though discouraging some of us remain in economic turmoil on the housing front and also distressing which despicable individuals continue prey upon the misfortunes of others, it's misleading in order to categorically label an investor driven back in order to back transaction, well-known as "flopping," as fraud. Though a noble cause, focusing efforts on just how in order to stop bad consumers from doing negative details is not just a shedding battle with regard to this particular instance it completely ignores the actual root problem of the particular short sale task and even prevents us from receiving a relevant plus lasting answer. Phenomenon of the Short Sale: Short sale occur when a homeowner (borrower) attempts to sell his or alternatively her home at a cost which is actually less than the full amount owed in order to the particular bank (the lender). Many commonly a short sale occurs because a last ditch effort by a homeowner proactively trying that would prevent a full foreclosure proceeding, that results within shedding their home to the bank, being forced that would move, and such as a bankruptcy, becoming locked out of the financing market for a period of seven to be able to ten years. Banks prefer short sale to foreclosure due to the fact that they (with regard to theory) resolve the particular outstanding debt faster and in addition result in the bank losing less money within the settlement of the negative debt. Before the actual emergence of our current housing crisis, banks reluctantly agreed in order to a short sale unless the actual homeowner displayed one of five usually understood "hardships." Those contained, loss of job or alternatively income, forced relocation (usually due in order to a job), death of a spouse or income provider, divorce, and / or an increase of interest rate that created the monthly mortgage unaffordable. This particular almost all changed right after the particular collapse of Lehman Brothers, and in addition the actual shifting political winds created amid bank bailouts, job losses, not to mention precipitous drops inside house values. American tax payers and even politicians demanded something be done to aid "Key Street America." The result of this particular perfect storm included the particular largest federal infusion of tax payer capital into the particular banking body since FDR was actually within the White House plus a myriad of federally mandated applications aimed at helping banks remain solvent (on paper) as they function by bad loans. For Key Street, the actual programs give unfortunate and also honest homeowners relief until they attain back on their feet (HAMP) as well as allow other homeowners a graceful exit within the stress as well as burden of unsustainable mortgage debt. Short sale, as soon as rare, include become more prevalent plus outnumber both conventional sales and REO sales throughout several of our hardest hit markets. For example throughout Stanislaus County, dubbed the actual mortgage fraud capital of the country, two of each and every three home sales occurring last year (ending June 2010) were short sale. In order to learn more regarding short sale, go to 自己破産 任意売却