Roanoke Virginia homeowners contemplating a short sale, Don’t Bank Where Your Loan Is!
About a month ago I re-blogged a blog about Right of Offset. Since that time it seems that the winds are changing for Roanoke Va Short Sales and some local lenders are starting to exercise that right. Evidently the Right of Offset goes so far as to allow a bank to take a vehicle that was bought with a cash out refinance or an equity line and sell it to satisfy any defeciencies. Many Roanoke Virginia Homeowners fail to read all of the fine print when signing the lending documents.
Not only do Roanoke Virginia Short Sale Listings have to worry about the Right of Offset, but now we are running into local (to be named later) Credit Unions that are refusing to cooperate in Roanoke Virginia Short Sales and loan modifications! These Credit Unions that fail to cooperate in Roanoke VA Short Sales and Loan Modifications are the very lenders who allowed (encouraged) borrowers to borrow 100% or more of their home’s equity with a Stated, No Document, Loan….with no Appraisal! Poor lending practices to say the least, but when you have a borrower who is trying to do the right thing and Short Sale the property or modify the loan, the lender refuses to cooperate! Their answer? Foreclose!
Do the math, short sale and take a $10,000 to $12,000 hit on the house or…….Foreclose….the buyer removes the kitchen cabinets, the HVAC, the Toilets, Vanity’s, Sinks and Doors, the bank spends thousands on attorney’s and the foreclosure process.
Drum Roll Please? The Grand Finale? I am told that if my client does foreclose, the bank will sue my client for the difference if they file for bankruptcy for loan fraud? You see, my client did a stated income loan…..and my client actually did make the money stated….at the time! Since that time my client has lost the original job and has a new, lower paying job.
So, lessons for today…..don’t bank where your loan(s) are, don’t use a credit union for a second mortgage or an equity line!
DamonGettier
