CoreLogic has introduced a new short sale fraud prevention and pricing product that gives lenders alerts on what it calls "risky" pending and closed short sales.
The Santa Ana, Calif.-based vendor defines short sales as "risky" when either the second sale amount is "vastly higher than the initial short sale" and/or the second sale transaction happens too soon after the first.
CoreLogic believes the product can help minimize losses related to fraud and property under pricing.
Its 'Short Sale Monitoring Solution' provides real-time access to lenders' concurrent transactions on short sale properties through the firm's mortgage fraud consortium. For short sales that have already closed, the system continues to watch the property for a period specified by the lender.
Any subsequent loans closed on the property generate an alert to the original short sale lender and the resale lender, if different.
Although too late to avoid the original sale, the post closing alert notifies the first lender to review sale terms for violations. It also alerts the new lender that it could be a party to fraud discovered in such dual transactions.
The service watches for and evaluates short sale resales for 90 days.
CoreLogic says short sale transactions could reach 400,000 this year.
