http://shortsalesr.us/short-sale-dos-and-donts/dont-practice-law-unless-youre-a-lawyer/ Selling a House When You Cannot Pay Off the Bank Sat, 24 Jul 2010 02:24:18 -0700 http://wordpress.org/?v=2.9.2 hourly 1 http://shortsalesr.us/short-sale-dos-and-donts/dont-practice-law-unless-youre-a-lawyer/comment-page-1/#comment-3760 Tim Burrell Fri, 16 Jul 2010 14:12:00 +0000 http://shortsalesr.us/?p=203#comment-3760 In the short sale approval, there should be some language concerning the release of the balance of the debt. If the seller/borrower gets it in writing that the short sale is in full settlement of the note, they should be able to rely on that to avoid any future collection efforts by the lender. The difference between just closing the sale, i.e. releasing the lien of the deed of trust, and total elmination of the debt i.e. fully satisfying the note, should be discussed either by the Realtor or legal counsel. In the short sale approval, there should be some language concerning the release of the balance of the debt. If the seller/borrower gets it in writing that the short sale is in full settlement of the note, they should be able to rely on that to avoid any future collection efforts by the lender. The difference between just closing the sale, i.e. releasing the lien of the deed of trust, and total elmination of the debt i.e. fully satisfying the note, should be discussed either by the Realtor or legal counsel.

]]> http://shortsalesr.us/short-sale-dos-and-donts/dont-practice-law-unless-youre-a-lawyer/comment-page-1/#comment-3754 Laurie Gengo Thu, 15 Jul 2010 00:58:44 +0000 http://shortsalesr.us/?p=203#comment-3754 Short sales raise many legal issues! We have several litigation cases where the lender is seeking a deficiency, yet lead the client to believe they were accepting a lessor payout to forego the debt. We have no regulations or laws on the issue which causes major issues. Plus, lawyers often are not involved to represent the seller. People think their closing lawyer is handling all short sale issues but rarely is that the case! Many consumers are being misinformed and often, misled. We need statutes and regulations on these issues to protect everyone involved! Short sales raise many legal issues! We have several litigation cases where the lender is seeking a deficiency, yet lead the client to believe they were accepting a lessor payout to forego the debt. We have no regulations or laws on the issue which causes major issues. Plus, lawyers often are not involved to represent the seller. People think their closing lawyer is handling all short sale issues but rarely is that the case! Many consumers are being misinformed and often, misled. We need statutes and regulations on these issues to protect everyone involved!

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