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HERE IT IS - THE FIXED FREDDIE MAC SHORT SALE AFFIDAVIT

By
Real Estate Attorney with THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY

Here it is! The 2012 version of the much despised short sale addendum from Freddie Mac!  As reported in several preceding articles, thanks to the American Land Title Association and others, the "sting" of being liable for any other party's misdeeds in a short sale transaction has been more or less alleviated.

Strangely, it is still called an addendum, not an affidavit, and refers to an affidavit, which in fact is the addendum. Go figure......

The new form has a new paragraph 14 along with other subtle changes, but the end effect is that it is clear that you know what you know and what you don't know won't come back to haunt you.  There is a provisio - turning a deaf ear or a blind eye to information you would have otherwise known is false or fraudulent will not be an excuse - that is still negilence on the part of the signor.

Interestingly, this form has grown in just 6 months from 12 paragraphs to 14 paragraphs, one paragraph at a time.  Will we see 15 paragraphs anytime soon?

Here is the new form and it can be compared to the previous form by going to my previous article: Freddie Mac Short Sale Addendum - Item #13 - I DON'T THINK SO!!

 

Copyright 2012 Richard P. Zaretsky, Esq.

 

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader. Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com  - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com  Website www.Florida-Counsel.com.  

 

See our easy to understand articles at:

 

TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

 

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Richard, it is interesting that the Real Estate Agents actually become a Party to the Transaction.  Am I interpreting that correctly?

Jan 11, 2012 03:29 PM
Mary Macy
Top Agents Atlanta Metro - Roswell, GA
Top Agents Atlanta Metro

I bookmarked your site to study this and your other articles more, Short Sales are not uncomplicated, making agents a part of this agreement is very interesting!!!  HUMMMM

Jan 11, 2012 03:40 PM
Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

Yep, it looks familiar!  I think this is the latest one that I have as well.

Jan 11, 2012 03:55 PM
Richard Zaretsky
THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY - West Palm Beach, FL
Florida Real Estate Attorney

Yes Fred, the agent is a party to the agreement.  One of the corrections made in agreement with ALTA and NAR was that the agent is not supposed to be a party to the contract.  The previous version of the Freddie Mac Short Sale Addendum did make them a party to the contract.  I don't see how clearly this distinction has been made in this "new" version.  I still think is should not be called an Addendum for starters.....

Jan 11, 2012 04:02 PM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

Always good to see your posts. very informative stuff, Richard.

Jan 11, 2012 04:23 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It looks pretty cut and dried to me.  But, I've seen some home owners and buyers think they are legal eagles and think they can find loopholes.  

Jan 11, 2012 10:55 PM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Richard -- Thank you for keeping us up-to-date on this important information.  We need to know this stuff, so we can make sure we are using the latest/best documentation in order to facilitate the process.

Jan 12, 2012 06:02 AM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

You mention that the form started with 12 paragraphs and has grown to 14 paragraphs. Will it grow longer? Are the people drawing up the form government attorneys? You have answered your own question.

Feb 06, 2012 04:35 PM