Short Sale, Foreclosure and Strategic Default

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Thursday, April 10, 2008

Short sales san diego - the real story behind short sales

Here is a link to an article which may explain why some of these large banks can't seem to review a short sale offer in timely manner. (without threats from an attorney).



Bloomberg.com: News: "itigroup, Wells Fargo May Loan Less After Downgrades (Update3)

By Mark Pittman, Alan Katz and David Mildenberg"

I have suspected all along Wells and BofA are pains in the ass because they do not want to have to acknowlege how truly screw up their books are.

In my opinion the short sale process seems to be designed to let the air out of the market as slowly as possible. It is quite possible if short sales were easier, prices would be lower and the banks would all be upside down.

Sunday, April 6, 2008

Deed in Lieu of Foreclosure

We have had a few deeds in lieu of foreclosure accepted in the last few weeks. Interestingly, the lenders seem to acknowledge they should release the sellers from a deficiency without us having to do a lot of new legal work. I have found on short sales I frequently have to contact the banks to get things straightened out.

The California deeds in lieu were well done and we only suggested a few changes for clarity. The Florida deed in lieu paperwork was a mess. In my opinion the the paperwork misidentified the parties and did not address the release of liability from the note to my complete satisfaction. However, since my client had been and investor in the florida property we did not want to push the issue very hard.

I will say the Deed in Lieu paperwork can be pretty detailed and you definitely need to make sure all the parties are properly identified. Some lenders seem to have trouble identifying the parties clearly because there are so many involved.