You would think by now that the short sale lenders would have their act together. Unfortunately this is not true, it has actually gotten worst. Our Short Sale Paralegals have to stop ten to fifteen foreclosures a month while at the same time continuing to negotiate the short sale contract.
In a state like Virginia, it makes no sense to spend thousands of dollars to start a foreclosure only to stop it within the last week in order to continue the short sale negotiation. California has recently passed legislation to stop this practice of "dual tracking". Unfortunately the California law is limited in its applicability: (1) the short sale has to be approved in writing, (2) proof of funds or financing must be provided and (3) it only applies to owner occupied residential loans. This law is not perfect, but it's a start.
"Where are our Virginia Legislators?"
Next week's Tip will continue to discuss this practice of "Dual Tracking".
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, VA (434-973-7474)