Short Sale, Foreclosure and Strategic Default

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Wednesday, June 13, 2007

Warning to Realtors short sale consultants

Potential liablity for Realtors? Given the inherent conflict of interest—a Realtor makes a commission on a short sale and doesn’t in a foreclosure—the real estate professional should proceed cautiously when counselling a seller. A short sale that leads to a tax liability and possibly to further financial hardship or bankruptcy could easily backfire on the party who profited most from the transaction. If the resulting credit scores also render the buyer unable to purchase another home or cause increased costs for auto loans or credit cards, it is easy to imagine the borrower taking a dive and hoping for a red card.

LendingClarity.com » Blog Archive » Short Sales vs. Foreclosures….Your Credit Will Suck Either Way

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