Scary things are happening everyday and Southern California home buyers are being targeted once again by criminals. These criminals are running short-sales scams. Short-sales normally take several months to close. With that knowledge the criminals are posing as the listing broker of a home for sale. When they receive an offer, they accept and collect the buyers deposits, placing it into the listing broker's non-independent escrow account. The communication is great between the listing broker and the selling agent in the beginning. Then the communication starts to slow down until it completely stops. The selling agent attempt to reach out to the listing broker's escrow and to their dismay, there is no answer nor returned messages.
There have been over 20 victims that have reported this crime and the California Association of Realtors are still receiving multiple calls regarding these alleged crimes. The Long Beach Police Department has opened a case within their Financial Crimes Division and are taking serious action. The LA County Police have made arrest regarding this type of crime recently, but I have yet to find out more details.
If you feel that you or someone you know that is buying a short-sale home, has fallen victim to such a scam, contact your local police department and the Bureau of Real Estate. If you or anyone you know may need help purchasing a home, please call me and I'll walk you through the proper steps and protect you and your investment.