Short Sale Flip Fraud – It’s not a law; nor is it an official policy, but it’s definitely going to be a problem regardless. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.

Last Friday, April 16, 2010, Freddie Mac posted a new article entitled :Emerging Fraud Trends: Short Payoff Fraud.” The article described a new trend in short sale fraud that happens when a short sale buyer flips a newly acquired property to another buyer and “pockets the difference.” This could mean problems for investors who have been short sale flipping, or negotiating short sales with banks and then selling the properties at a profit.

The Freddie Mac poster went on to describe scenarios and red flags for short payoff fraud. The scenario revolved around a short sale facilitator who set up a deal with a lender to purchase a home worth 80K for 70K while the lender took a 30K loss. The facilitator does not disclose that he already has an outstanding offer for $95,000 from a second end-buyer. When the transactions close – in this case on the same day – and the facilitator pockets the difference, according to Freddie Mac he has just committed fraud because he withheld information about a higher offer and causes Freddie Mac to take a “larger than necessary” loss on the sale.

The writer encourages everyone involved in short payoffs to look out for short payoff flags. These flags include sudden borrower default, a borrower who is current on other obligations and the buyer of the property being an entity rather than a person. The article also tells readers to keep an eye out for resale options in their purchase agreement.

Buyers, sellers and lenders all are encouraged to report short sale fraud the second they become aware of or suspect a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.

There are actually usually gonna be occasions when, no matter how meticulously an excavation company plans out a undertaking, there merely isn’t adequate equipment on hand to deal with the demands of the project with out not having enough time.  The choices at this point are clear – rent the machines you need or go on and make the purchase.

It is nonetheless, not easy to make these types of choices, thanks to numerous reasons that you’ll take into account.

Rental pricing

Its no secret that rental companies make a killing with the equipment they hire out.  Most companies will rent on a day-to-day or weekly basis, which is good for them but can be poor for you.  Dependent on what region you work in, the price tag can be quite high or perfect.

Based on which kind of equipment you need, the price tag to rent will vary.  Excavators and off road dump trucks are among the top to rent, as they can charge as much as 12,000 dollars monthly!  This will likely seem a bit unreasonable at first, though if you own a profitable company and are operating on a big undertaking, you’ll have difficulties meeting the cost.

Buying

If you need a lot more equipment and shouldn’t rent, you can purchase your equipment.  Buying is ideal if you plan on employing the equipment much more.  When you work on big tasks on a recurrent schedule, you might want to check into buying the equipment you have to have rather of renting.

Buying will save you money over time, providing you are likely to be utilizing the equipment again.  If you’d like the equipment for one or two assignments, you might would like to rent.  Sure you will not own the equipment, although you certainly shouldn’t buy anything you would not be utilizing.

Servicing

Among the great things about renting is the fact that company you rent from accounts for fixing anything that breaks.  Your company won’t be responsible for repairs, as you will not own the equipment.  If something breaks or goes wrong, just call the company and these people will come out there and repair the problem, as the price of repair is included in the rental contract.

If you choose to go on and buy the equipment, then your company will be responsible for the repair of the equipment.  As you probably know with owning other equipment, you’ll do regular maintenance and service on the equipment.

Making that final selection on renting or buying is in the end up to you.  You should always think about finances, and if you can afford the machinery.  If you don’t have the funds or capital to buy what you need, you should go with renting.  Either way you go, you’ll get the machines you need to complete your job and stay ahead of schedule.

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Digging trenches is among the older types of work with both construction and excavating.  Previous to World War 2, trenches were dug by hand.  As working people dug the trenches deeper, the sides would need to be shored or supported, to keep the walls of the trench from caving in.

Immediately after the World War, a number of innovative developments were made in backhoes, and trench digging appeared to fade away as a profession.  By 1950, hydraulically actuated backhoes were created, which make it feasible to  rapidly dig very deep trenches.  Resulting from the innovations with backhoes, and since there were no workers inside digging the trenches, the walls no longer had to be shored.

Every type of trenches have what’s known as a stand up time.  This period is the amount of time that elapses from the time the ditch is dug until the time the trench walls start to fall.  The stand up time is depending on many conditions, which normally include the type of soil, water content, trench depth, weather factors, and whether or not the soil has beendisturbed.

The stand up period can be as quick as zero seconds or provided that many months, as they are very tough to predict.  Well before the trench can be dug, somebody must take soil samples as way of estimating the stand up time.  Remember that the soil conditions can be dramatically different only a  few feet from where the sample of the soil was taken.

After the trench has been dug, laborers will go down into the trench, and perform whatever work is  required, such as laying pipe or installing telephone lines, welding pipe, or installing valves.  If the trench walls aren’t supported, there is the possibility of the walls collapsing and trapping the workers in the trench.  All through history, there have been 100 – 300 people killed in the U.S. each year due to trenches collapsing.

The public has become very aware that industrial advancement will often have negative side effects as well.  The place of engineers protecting the  public from these types of side effects is an extremely controversial issue.  The usage of trench boxes on the website, will help to ease this debate.

The trench box, otherwise known as a trench shield, could be placed in the trench to reduce failures from hurting workers. The trench box comprises of two large plates, commonly made from steel, which are parallel to the walls of the trench, and horizontal cross members that will hold the two plates apart.

The lower edge of the trench box sits at the bottom of the trench, with the top edge of the box stretching above the top of the trench.  The workers will stay in between the plates of the trench box, so that if the trench does collapse, the dirt will be halted by the outside of the trench box.  As the work progresses, the trench box is drawn down in the trench with a backhoe or some other machine.

When a project calls for a large excavation such as digging the foundation for a tall building, the supporting framework for the excavated walls will be specified in the plans.  The major problem with not using trench boxes happens in cities, when water or sewer lines are being installed or repaired.  The engineer doesn’t specify for the trench box in the plans, but instead leaves it up to the contractor.

Anytime you are likely to be digging trenches or working in them, you should always use common sense and spend some time.  Trenches can be very deadly, especially if trench boxes aren’t used.  To be safe and sound, always use a trench box so that you can be in the trench.  If you don’t need to be in the trench – do the smart thing and let the machines do all the work.

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