does anyone have any thoughts on this topic?

i'm mostly concerned with a situation (that is very common) where the investor gets the bank to accept as little as possible while they already have an end buyer lined up at a higher price than what they will pay to buy. when the bank finally accepts what they think is the best offer out there, the investor uses a simultanious close (back to back, double close) to buy low and sell high all in one day.

there are tax implications for the homeowner facing foreclosure that are based on the amount the lender forgives. this deficiency amount is considered income to the homeowner and the bank sends them a 1099-c and reports this to the irs.

is it questionable (or illegal based on fraud) for the investor to not disclose to everyone involved, especially the homeowner they are claiming to help, that they are making big money by keeping the highest offer secret so they can flip the property.

would the homeowner have agreed to work with the investor(or the agent representing the investor) if the homeowner knew all the details of the transaction?

thoughts and comments are appreciated!