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socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 37822
Experience:  Attorney and Real Estate broker -- Retired (mostly)
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I have to sue someone over a real property. I want to prove

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I have to sue someone over a real property. I want to prove that she is involved in a shrot sale fraud even if that matter is not related to my interest directly. She sold a property by short sale to a corporation whose agent is her employee. The employee is also the agent of her business which is another corporation. It looks like her employee is paid high enough to pay for the short-sold house. Even if it looks like no problem at all, I know the actual owner of both business and house is her. The short sale is all made up and as far as I know, that is a mortgage fraud. Is there any way I can prove that?

If the lender on the short sale approved the sale without disclosure that the seller was effectively selling the property to herself, then that would be, among other things, federal bank fraud (18 U.S.C. 1344) -- which is a serious federal felony offense.

If you are not directly damaged by this sale, then there is only one legal action that you can bring. It is called a "qui tam" action, and it is brought in order to vindicate a damaging fraud against the United States or one of its many agencies or officers. In the case of a short sale, the damage is that the lender must have received less in the transaction than would have been the case if the sale had been a true open market transaction.

The difficulty with a qui tam action is that where a person sues on behalf of the United States, the person who sues must either be a lawyer or must hire a lawyer. The reason is because the real plaintiff is the USA, and only a licensed attorney can represent a nonhuman entity, such as the federal government.

Qui Tam actions are complicated lawsuits. Most people simply "blow the whistle" and report the matter to the government for investigation. Regardless, if you would like to learn about the qui tam lawsuit, then here is a comprehensive discussion from the Congressional Research Service.

Please let me know if I can be of further assistance.
Customer: replied 3 years ago.

I do not want to sue her for the short sale, I just want to prove that she is that kind of person in case her moral issue is discussed in the court. So my question is is there any way that I can prove that even if all the documents look like she is not involved?

Customer: replied 3 years ago.

Relist: Answer came too late.

My apologies for the delay, but I was helping someone else, and it took longer than I expected.

You could contact the Secretary of State and request a copy of the business' articles of incorporation/registration. It may indicate that the seller is also the original incorporator of the business that acted as the buyer.

That's about all you could do for proof. Other than that, you can contact the lender and offer your belief that the seller and buyer are the same. You can also contact the FBI and report the matter. After that, you would have to just step aside and let the government conduct its investigations. You cannot force the government to prosecute the seller.

That's really all you can do. Please let me know if I can be of further assistance.

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