CoreLogic has just introduced a new software program designed to catch real estate brokers and agents who commit short sale fraud by providing a low bid to lenders in order to get a second commission by flopping the property to a higher bidder.
The new CoreLogic Short Sale Monitoring Solution is designed to help lenders maximize what they are earning on short sales by alerting lenders about all offers made on the property. The software also monitors the property after the sale is complete. If it is “flopped” for a higher price, the lender is notified and can pursue the agent or broker involved for fraud.
CoreLogic says it estimates that lenders are currently losing over $40,000 per short sale transaction – or a total of $310 million in 2010. The company estimates there will be in excess of 400,000 short sales negotiated through real estate agents this year.