The Colorado Springs real estate market is shiftng. There are more Colorado Springs foreclosures than there has been in years, and because of that, there are more short sales.

Read More:

• What is a Short Sale?
• Colorado Springs Home Owners Beware of Foreclosure Assistance SCAMS

Well, with any shifting market, comes people who will take advantage of the kinks in the system it for their own gain. Well, this market is no different.

There is a new scam that is happening in the Colorado Springs real estate market. According to the Pikes Peak Realtor® Services Center,

"The Association has become aware of a scenario that appears to involve concealing important information from lenders. The scenario typically involves an investor/buyer negotiating a purchase contract with a seller/borrower subject to a successful short sale. The investor/buyer then negotiates a short sale with the lender. The investor/buyer simultaneously markets the property for a higher price. Once a new buyer is found, the investor conducts a simultaneous closing--pocketing the difference between the short sale price and the new purchase price. Apparently, the lender is unaware of the new contract for a higher price. In summary, simultaneous closings involving short sales and significant sales price adjustments could be a red flag."

This is mortgage fraud. Mortgage fraud is a federal crime and punishable by thousands of dollars in fines and years in prison. The FBI does not take mortgage fraud lightly. ... Just sayin'.

If you are a seller facing a foreclosure on your Colorado Springs home, and you suspect that this may be happening, please report it immediately. (Even if you just suspect it, you should request an investigation.)

FBI Field Office, Mortgage Fraud
Denver FBI Website
White Collar Crime Supervisor
Federal Office Building, Room 1823
1961 Stout Street, 18th Floor
Denver, CO 80294-1823
Phone: (303) 629-7171

Posted By: Mariana Wagner - Colorado Springs Real Estate Agent