Homeowners in financial distress typically turn to Short Sale only after giving up on the nightmarish loan modification process. But last week, OneWest bank agreed to re-convey the Deeds of Trust on TWO homes and pay a 7 figure cash settlement to a retired San Luis couple who accused the bank of loan modification dual tracking fraud. For one family, the FREE HOUSE DREAM, times two, has finally come true.
This is BAD NEWS for Short Sale agents. Combined with the legal effect of the Homeowner Bill of Rights and the GLASKI case, which now allows borrowers to now judicially challenge failed mortgage securitization transfers, this stunning development is causing homeowners to re-consider short sale as the last alternative to home foreclosure. As a result, the pre-mature steering of homeowners into short sales by overly-zealous real estate pros results has substantially increased licensee LIABILITY.
Agents FEAR NOT: The SOLUTION for closing more short sales without worry of getting sued is simple: Leave it to an experienced, qualified mortgage litigator SIGN OFF on the Short Sale. Now more than ever, it is CRITCAL that an independent COST analysis of the homeowners’ various financial and legal options is conducted by before close of escrow. Homeowners often have colorable claims, defenses and options against loan servicers and owners that are unknown to them and their real estate agents, but the COST and risks of justice must be factored into the decision making process. Sometimes litigation is simply unaffordable. Whether or not litigation, bankruptcy, modification or a combination of those tools are a viable options is ALWAYS driven by the PROS, CONS and COSTS and risk of those various options.
As a real estate pro, your job is to NOT TO MAKE THAT CALL. Rather, best practice is that you request that an affiliated attorney speak with you and prospective homeowners in financial distress as early as possible. All legal options, COSTS and risks can be discussed and allows for the homeowner to make an informed decision. Only then, can a licensee feel confident that they are not providing erroneous legal advice or fear they will later by a regretful homeowner.
An affiliated attorney can provide you the knowledge, the credibility and the COVER from liability you need. At your request, I will speak to you and your short sale prospect for FREE.
For more information on the Rigalis Free House settlement, read on.