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 restrictions: 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 restrictions: 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)
short sale restrictions: Freddie Mac and Federal Government Making Short Sales Nearly Impossible
- 11/03/11 09:24 AM
It never seems to get any easier. Short sales have become increasingly more difficult. Wells Fargo for example, has included addenda that require an investor buyer to hold a property for 90 days prior to reselling. This mandate comes from the investor on the note (Freddie Mac). Here is the hypocrisy: Freddie Mac is not the government as many people believe. However, the government (and taxpayers) have a relationship with Freddie Mac and own a sizable chunk of the company. Several states have enacted legislation or already have legislation that prohibits such restrictions. I am going to blog about the topic … (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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