Jun 18, 2012

Tip 24-2012: Avoid "Property Preservation" Services with a Short Sale

Short Sale

Tip 24-2012:  Avoid "Property Preservation" Services with a Short Sale

When the Borrower becomes delinquent with their mortgage payments, it is common for  lenders to send someone to check on the property.  The company who inspects the property for the lender is commonly referred to as an "Asset Preservation, Property Preservation, or Field Inspection" company.  If the property is abandoned, the Asset Preservation Company will usually secure the property by changing the locks, winterizing the plumbing, cutting the grass, and sometimes boarding up all entrances.

However, if the property is actively being marketed as a short sale, never let the Asset Preservation Company have anything to do with securing the property.  Even if the listing realtor has a "For Sale" sign on the property, the Asset Preservation Company may still attempt to secure the property.  They normally call the listing realtor, but sometimes all they do is post a notice on the door.  If no one responds, they will then change the locks on the doors, thus making access next to impossible.

Even if the Asset Preservation Company promises to allow access to show the property, do not believe them.  Any system they set up is never as easy as a lock box on the front door.  If you want to have a reasonable chance of a successful short sale, keep the lender and their Asset Preservation agent away from the property.  Simply tell the Asset Preservation Company that the property is being maintained, and the lender has no right to secure the property.  Let them know their assistance is not needed.
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions, or visit our blog below for previous tips.  Thank you for allowing us to send you this email.    

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William D. Tucker, III   
Charlottesville, VA 434-973-7474 | Lake Monticello (Palmyra, VA) 434-589-3636  

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