short sale affidavit: Always Helps to Read the Fine Print
- 03/04/12 02:35 AM
Always helps to read the fine print. This is especially true with government documents. For example, on a HUD-1, we typically read the second page first!! LOL I wanted to point something out that is frequently overlooked in HAFA (Home Affordable Foreclosure Alternative) programs. The fine print in a HAFA transaction typically reads that if the lender rejects the HAFA short sale offer, the transaction AUTOMATICALLY converts to a Deed in Lieu (DIL)! For this reason, I have sellers execute a HAFA opt out form that is dated at the time of the purchase contract but not tendered unless … (6 comments)
short sale affidavit: 4th Part in the Series on Why Short Selling Lenders Cannot Enforce Restrictions
- 11/17/11 09:09 AM
A few days ago, I wrote a blog about the four reasons why lender restrictions in short sale addenda are unenforceable. To recap, they are: The Four Components 1. The restrictions are required without legal “consideration” and are therefore invalid; 2. The restrictions are voidable because there is no “privity” of contract; 3. The restrictions cloud title (some states formally prohibit the restrictions); 4. The restrictions violate the spirit and intention of Uniform Commercial Code. Today, I will discuss the fourth component of why the restrictions placed by a short selling lender may be unenforceable. The Uniform Commercial Code is … (2 comments)
1. The restrictions are required without legal “consideration” and are therefore invalid;
2. The restrictions are voidable because there is no “privity” of contract;
3. The restrictions cloud title (some states formally prohibit the restrictions);
4. The restrictions violate the spirit and intention of Uniform Commercial Code.
Today, I will discuss the third component in the four part series. Many if not most of the restrictions … (5 comments)
short sale affidavit: 2nd Part of the Enforceability of Lender Short Sale Restrictions
- 11/09/11 11:02 AM
Yesterday, I wrote a blog about the four reasons why lender restrictions in short sale addenda are unenforceable. To recap, they are: The Four Components 1. The restrictions are required without legal “consideration” and are therefore invalid; 2. The restrictions are voidable because there is no “privity” of contract; 3. The restrictions cloud title (some states formally prohibit the restrictions); 4. The restrictions violate the spirit and intention of Uniform Commercial Code.
Today, I am writing about the second component. The restrictions are unenforceable or voidable because there is no “privity” of contract between the lender and the buyer. … (3 comments)
short sale affidavit: Series on the Enforceability of Short Sale Affidavit Restrictions
- 11/08/11 06:18 PM
The reason that short selling lenders cannot legally enforce their restrictive affidavits has four basic legal components. I will address each in a separate blog because of the length of each component. The Four Components 1. The restrictions are required without legal “consideration” and are therefore invalid; 2. The restrictions are voidable because there is no “privity” of contract; 3. The restrictions cloud title (some states formally prohibit the restrictions); 4. The restrictions violate the spirit and intention of Uniform Commercial Code
I. Legal Consideration. In order for a promise (or in this case restriction) to be legally … (3 comments)
Author Bio: Paddy Deighan earned his Juris Doctorate and PhD Paddy consults with taxpayers in regard to tax liens, tax levies, tax levy, offer in compromise, tax debt, tax settlement
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