HUD Asked Me To Lower My Bid

Some firms are scamming property preservation specialists on property preservation bids. The firms play a game to make more profit at the expense of the property preservation specialist.

The scam works this way. The property preservation specialist (PPS) is asked to provide a bid to remove some exterior debris. The PPS prepares and documents a bid. The bid is provided to the PPS customer. The customer says that HUD is asking that the work be performed for a lower price. The PPS is not provided with any written documentation from HUD which shows that HUD is asking for a lower price.

The PPS falls for the scam and submits a lower bid to the customer. The lower bid is accepted and the PPS is paid the lower fee. The customer submits the higher bid to the bank. HUD pays the higher bid to the customer while the PPS is paid the price of the lower bid. This happens every day. It happens because there is a lot of fraud in the mortgage segment and the Government audits are not detailed. The audits do not go far enough … they are top level audits … the fraud is at the lower levels. This fraud on property preservation specialists and banks is happening every day.

If a firms says HUD requires you to submit a lower bid, ask your customer for a copy of the written correspondence from HUD.

Has this happened to you? Email your story to richard@law.name