The BPO May be on its Way Out

As we discuss in this month’s newsletter, for the past several years BPO’s (Broker Price Opinion) have been the primary method that note servicers/note holders used to establish the short sale property’s market value.  The servicer might have ordered a more expensive...

Government Backed Loans May Be Delayed

So you have your approval letter and now you are running into problems with the Buyer’s government backed loan.  Whenever you take on a short sale an important consideration is the Buyer and the Buyer’s loan.  For example, if the property is in unfit condition and...

Where Oh Where is the Mortgage Forgiveness Debt Relief Act?

So here we are again waiting to see if Congress will extend the 2007 Mortgage Forgiveness Debt Relief Act (Act) for another year. The extension came late last year because of the Fiscal Cliff negotiations. It was finally extended as part of the American Taxpayer...

Buyer Termination in a Short Sale

In North Carolina the Short Sale Addendum allows the Buyer the right to unilaterally terminate the contract and receive the earnest money back at any time prior to the Seller notifying the Buyer of lien holder approval. If the parties have negotiated additional time...

What? BOA does not Play Fair? Say it ain’t So!

So according to several whistle blowers that used to work at BOA, it turns out that the BOA reps in the Loss Mitigation Department were paid cash bonuses to shut files down and move them on towards foreclosure.  Shocked?  I’m not.  My staff just smiled and nodded when...

More on Stopping a Foreclosure

I know that we have talked about this before but since this is the “Year of Foreclosure,” it warrants an update and reminder. First of all we should remember that there is no right to a short sale and, by extension, no right to a postponement of the foreclosure sale. ...

Short Sales are “Ugly” Law

I have heard real estate law described as “happy law.”  That actually makes sense because in a normal real estate closing there may be some bickering over curtains but in the end the buyer is getting the house and the seller is receiving money. In a short sale,...