A Realtor’s attempt to defraud a Midwest Bank of $60,000 was thwarted with the assistance of a Web-based offer-processing service that eliminates the possibility of foreclosure fraud.
The bank was using OfferSubmission, an online management system where financial institutions, mortgage servicers and asset managers can ensure that every offer for a distressed asset is received because they are submitted through this solution directly by the buyer’s agent. OfferSubmission was developed to prevent fraud, make transactions faster and ensure greatest loss recovery for asset owners.
“Our system catches fraud while it’s happening,” said Rodney Carey, the CEO of Southfield, Mich.-based private equity firm Woodward Asset Capital, the parent company of OfferSubmission and Verified Short Sale.
In this scheme, the Realtor was selling the bank’s foreclosed assets and attempted to double-dip the value of an REO property in order for their client to acquire the asset. The house was listed for $241,500, a value approved by the bank based on the agent’s broker price opinion and appraisal that was conducted, and the Realtor submitted a full-price offer for the property on the first day the asset was listed on the Multiple Listing Service.
However, the bank was able to see through OfferSubmission that other Realtors made additional offers for the property, one as high as $300,000. To make sure her client obtained this foreclosed asset, the fraudulent broker decided to raise the offer for the home and simultaneously deemed the property sold in the MLS.
OfferSubmission staff notified the bank about this deceptive scam and the financial institution was able to prevent this Realtor from making it lose a significant amount of money.
“This is why we created these products—to answer problems in the REO and Short Sale space,” said Ronald Jasgur, president of WAC. “Every day, we focus on how we can improve our systems so they are the easiest and most effective answer for our industry. Transparency is key; we bring everyone to the table and the results are truly game-changing.”
Woodward Asset Capital said that asset owners who use OfferSubmission find that 22% of their properties sell over list price every month. The company added that properties sold through this online software averages approximately six offers and the response time is 22 hours.
“All offers are tracked and noted, making it easy for servicers and asset managers to revisit earlier offers if an accepted bid falls through,” Woodward Asset Capital said in a press release.