I need some help...

I have a client who is working with a lender on a new purchase through his wife who was advised to submit a John Doe offer just to get a short sale approved and than substitute a real name if and or when an offer is received

there is no way I am willing to do that......

but my question is this.......

how would you reply to that request from a client?

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tell them no. If found out, you can get black listed from the lenders (I've seen it happen) regardless, if you do get an approval with the fake offer, you cannot just "substitute" the new offer anyways, the lender will re underwrite it unless it is a HAFA deal.

Bottom line, price it correctly and you should have multiple legitimate offers quickly, pick the strongest offer and submit.
Let the homeowner know the ethical issues with doing this. Unfortunately many HAVE done this practice.

I'm with Joseph in the fact that PRICE CURES EVERYTHING! Encourage them to Price it cheap, and some kind of offer will come very quickly most of the time. Works for us.
Lets call it what it is.....FRAUD........
I agree with you. This is FRAUD. What really get me is that there are agents out there who are still doing this and loan officers who are recommending it.

To pull this off with most banks, one would have to at the minimum:
1. create a fictitious offer contract
2. get or create a fake pre-approval letter
3. manufacture proof of funds

I will not do this.

I just wish I could find out who recommended this so I could report them.

So few of us take the time to report the bad apples in our business.
It isn't that hard to find a real offer in which case you would have no problems. If you don't have a buyer, I probably do.
Tell them it's considered a straw buyer situation and there are agents in jail for it. You're not willing to risk jail time. Plain and simple.

I've been asked to allow the buyer's parents to purchase from the kids and sell back. I said NO. I've signed to many arms length transactions.

It's not worth it for you.

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