Distressed sales remain source of risk | 2013-09-13 | HousingWire

Distressed sales remain source of potential fraud riskShort sale transactions on the rise since 2006Megan HopkinsSeptember 13, 2013 5:27PM0 CommentsForeclosureShort saleCoreLogicDistressed SalesShort Sale FraudEd GerdingEmailPrintReprintsShare on facebookShare on twitterShare on linkedin MoreAAARelated ArticlesInterthinx Fraud Report Links Mortgage Fraud, Foreclosure: DBRSSuspected Mortgage Fraud Reports to FBI Grew 5% in 2009Mortgage fraud greater in areas riddled with foreclosures: InterthinxRelated CompaniesHubzuThe volume of the nations shadow inventory is on the decline, but remains high as lenders and servicers continue to work through a backlog of properties, CoreLogic CLGX said. The research firm said during a webinar on fraud risk that distressed asset sales, such as short sales, remain a potential source of fraud.Unrealized recoveries on suspicious short sale transactions can cost lenders as much as hundreds of millions per year.”The trend that we’re seeing is that the overall short sale volume has dropped slightly, but that the combined suspicious rate has been static so far from 2012 to 2013 at 83%,” said Ed Gerding, fraud and risk strategist at CoreLogic.

via Distressed sales remain source of risk | 2013-09-13 | HousingWire.


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