Short Sales beware of new twists and turns from lenders!
I first read a bit of very important information from Bryant Tutas warning of instances where home owners in the short sale process had their bank accounts seized by their lender. One would have to have an account with the lender in order to have this happen, but happening it is, in more than one state. The recommended solution for this is if you have bank accounts with a bank that also holds your mortgage, pull your money out and transfer it elsewhere. This practice may be illegal in some states, I do not have confirmation at this point in time if it is illegal in Connecticut. However agents who live in states where it should be illegal have clients who say it happened. Checking with an attorney is the suggested way to find out if it could happen in the state you live in.
Bank of America has been named in the above practice.
As if this wasn't bad enough, CNBC has a report that second lein holders have begun to demand money paid outside of closing to them from the buyer and or from the real estate agent in order to release the lien. We all know this practice is illegal, however it is being done according to real estate agents interviewed. Check out this video from CNBC, it is an eye opener. BOA, Chase and Citimortgage have been reported as participating in this practice. Thank you to Mark Archer who alerted me to this, Mark is a bull dog who is not afraid to tell it like it is!
According to the report only 7% of all HAMP applicants have been approved for loan remodification. Another scary figure, 2.8 million properties received foreclosure notices in 2009, that is up 120% from 2007. The figures are staggering, and rising for the month of December 2009.
Andrea Swiedler, Realtor, Southern Litchfield County Real Estate
2017 President, Greater New Milford Board of Realtors
2017 Connecticut Magazine 5 Star Realtor
Coldwell Banker Residential Brokerage
Litchfield County Regional Office,375 Danbury Rd, New Milford, CT 06776
© Andrea Swiedler 2009 - 2017
Always do right. This will gratify some people and astonish the rest. - Mark Twain