Jul 14, 2010

Tip 26-2010: Short Sales & Foreclosure

It is often said that the “right hand does not know what the left hand is doing.” This is especially true with short sales. It is not unusual that while the same lender is considering a short sale application, the “left hand” of the lender is commencing a foreclosure action.

Accordingly, it is important that the Seller and the “authorized parties” continue to communicate with the short sale lender while the short sale application is in process. Additionally, the Seller should open and review all correspondence from the short sale lender. Finally, it is advisable to review the legal classified advertisements to be sure that a foreclosure is not being advertised.

Normally, the “right hand” of the lender negotiating the short sale will stop or postpone the “left hand’s” foreclosure. But this is not always the case, and especially if no one notices and fails to inform the short sale lender of the foreclosure conflict. The best advice is to keep alert and never completely trust the short sale lender.

Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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