The latest scam in Metro Detroit real estate

The latest scam in Metro Detroit real estate is homeowners short saleing their house to a relative. It is not supposed to happen. In fact many banks have a form that the buyer signs that they are not related to the seller. But it is happening. I myself have heard of one and have heard of others lately.

The one I know of (or believe I know of) was helped by the real estate agent. He was a friend of theirs. I think the Northville home went for over $500,000 originally. Then the homeowner bought it back for about $300,000. Not bad to shave off $200,000 off your mortgage. The way they are being able to do a Metro Detroit short sale like this is by having a relative with a different last name. Sometimes it is an in-law, sometimes a future wife, or sometimes even a spouse of a relative.

It is fraud if you sign a document that says you are related, and you really are. I know we all want to help our family out but you going to jail to save them money is not the smartest thing to do. Our prisons are full of people that thought they were really smart.

It's not worth going to jail for. Just my thoughts. May you and your family have a great week!