New Short Sale Snag May Be Illegal

Short Sales are difficult, at best, but a new tactic has appeared on the scene that may make them nearly impossible. Apparently, the second lien holders are demanding “special” consideration before approving their part of the short sale.

Both lenders must approve a short sale, but second lenders often get the least money in the deal under the terms of a typical mortgage contract.

In recent months, second lenders have begun to demand extra money in a side deal to get them to approve the short sale. And some don’t want the seller to tell their first lender anything about it, real estate agents say —- a condition that may constitute mortgage fraud by violating state and federal disclosure requirements.

About rereno

Real estate investor
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One Response to New Short Sale Snag May Be Illegal

  1. Kevin G says:

    Is these no honest people in the Mortgage lending business? I don’t think 99% of the people even realize what they are signing in the real estate sales transaction that involves signing and ‘note’!

    Get educated before you get a pile of paperwork shoved at you to read and sign in 5 minutes! ALL escrow closing that I have seen offered little explantion of the mortage note….’just sign here’

    Here’s something to think about. A ‘NOTE’ is a contract..right? Check to see who signed that contract you have. You…and only you!

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