Thursday, August 6, 2009

Selling short can be scary - Sacramento Business, Housing Market News | Sacramento Bee

Home Front: Selling short can be scary - Sacramento Business, Housing Market News | Sacramento Bee: "A second concern

People trying to do short sales also are worrying about reports that some lenders are selling second mortgages – typically the down payment loan – to collection agencies. They fear that in three or four years those agencies will be on the phone seeking payment.

Hainsworth confirmed it's happening. Elk Grove bankruptcy attorney Jonathan Stein said the owner of a 'second' has up to four years after the default date to collect. He said it's critical that your real estate agent negotiates a solution to the second.

Stein fears some people will rebuild credit scores after the hit of a short sale only to file bankruptcy when confronted later by a collection agency."

For more info about proper short sale negotiation

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