Undisclosed Short Sale Payments May be Illegal
By Jason Crawford, MBA
(PartnerFirst Real Estate Network & Millenia Real Estate)
I just wanted to share some interesting short sale news as provided by the California Association of Realtors. Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® UNDISCLOSED SHORT SALE PAYMENTS MAY BE ILLEGAL Undisclosed payments in short sale transactions, especially those paid outside of escrow, may violate the law, including RESPA, laws against loan fraud, and licensing laws. Short sale agents have increasingly reported to C.A.R. about requests for agents and their clients to pay junior lienholders and others, oftentimes outside of escrow. One common scenario is when a short sale seller's senior lender authorizes a payment of $3,000, for example, to extinguish a junior lien, but the junior lender demands that the buyer pays an additional $9,000 outside of escrow. Not ...
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