Tip 48-2010: Short Sales & Mortgage Insurance

A recent trend with short sales is that the Seller’s mortgage insurance company may become part of the negotiations (The Seller may not even know they have mortgage insurance.)  As part of the short sale approval, the MI Company may demand a promissory note and/or a cash contribution in order to approve the short sale.

The good news for the Seller is that this contribution should result in the short sale lender and MI company agreeing to waive any deficiency.  The bad news is that someone has to pay the additional contribution.

If the Seller does not have the available funds for the contribution, then in order to obtain the approval, either the Purchaser and/or the realtors have to provide the additional contribution.

Each short sale is different, so this may not always be the case.  Nevertheless, it’s best to alert both the Seller and Buyer in a short sale transaction that the contract terms and cash required to close may need to change as the short sale negotiations proceed to an approval.

Please contact us if you have questions or need legal advice.

Senior Partner

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBLaw.com
www.TGBLaw.com

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Tip 47-2010: Holiday Schedule

This year both Christmas Day and New Years Day fall on a Saturday.  As a result, the local Courts and Clerk’s Offices will have unusual schedules.

Christmas Closings:  All of the local Clerk’s Offices will be closed on the Thursday and Friday before Christmas (December 23 & 24).  The one exception is the City of Charlottesville, which will be open on Thursday, December 23 (Be prepared as this may change).

New Years Closings:  All of the local Clerk’s Offices will be closed Friday, December 31.  Albemarle plans to also close on Thursday, December 30. (Good idea to plan on other Clerk’s Offices also deciding to close on December 30.) 

ADVICE:  To be safe, plan to record only on Monday through Wednesday for both the week before Christmas and the week before New Years.  This means that any closings during the last two weeks of the year should occur only on Monday & Tuesday, allowing for Wednesday to finish recording. 

Have a Happy & Safe Holiday!!

Please contact us if you have questions or need legal advice.

Senior Partner

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBLaw.com
www.TGBLaw.com

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Twitter
YouTube