Since the whole POINT to a short sale is to get your bank to actually relieve you of a possible big lawsuit to sue you for a DEFICIENCY on the amount you did joy to repay them. If your underwater $200,000 it’s a big cloud to chase you for a lucky seven Birthdays !!
I’m not a lawyer, I’m certainly not a bank.
I’m a broker who fights for homeowners who lost jobs, signed predator loans, etc. and are upside down. So it boils me to see customers who didn’t get the right legal advice up front and foreclosed and live with this seven year threat.
Beware : Banks are now selling this right to sue to debt collectors for pennies on the dollar and there’s a farm industry growing into a little crowd of shark attorneys ready to attack on the millions of former home owners. Seven years of fun on the way.
Once everyone has a job again these sharks will have that BIG judgment to attack for and get paid off docking your future wages or going after your future home. So much to look forward to. Think short sale! It’s the way to freedom!
A way to slow down banks.
So it relieves me that a new story popped and politicians are on the side of homeowners. The banks are so overwhelmed- which is understandable, they freaked out and hired guys who forged documents.
The lender fraud theme has become a nationwide narrative. Since the point of a short sale is to force, cajole and push your lender to sign over freedom from such a potential lawsuit.
Lawmakers in Washington requested a federal investigation and are asking who is signing and who is forging all the foreclosure documents.
This is good news for everyone considering a short sale- and for the dozen deals I’m negotiating now.
It makes it less likely a lender will succeed to a foreclosure on schedule, forcing them to deal with us more favorably.
So be grateful that 30 Democratic representatives from California told the Justice Department, the Federal Reserve and the comptroller of the currency that “it is time that banks are held accountable for their practices. The excuses we have heard from financial institutions are simply not credible.”
Watch for rest of the big lenders to stall Foreclosures for a few months now, Wells Fargo among them.