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Did my short sale listing ... just go to "try" to get a loan modification? And should I disclose it?

Reblogger Rita Bradley
Real Estate Appraiser

Rosemary Brooks always has the most thought provoking articles. 

Original content by Rosemary Brooks

Yes! This can and has happened.  A property is short sale listed (listed over 1 month) and the homeowner ask about the new plan for loan modification.  My suggestion was to go back to the lender and try to get the modification.  When agents call about the property I now have to disclose that the owner is trying to get a loan modification.  Most will not submit an offer after you tell them that, but you do have to disclose this kind of information. 

I beleive it is wise for the homeowner to continue to list the property until they are told in writing that they have the modification.... otherwise, they may find themselves in a very stressful and lost of time situation.  Not that we do not believe the new program of loan modification will work.... but what if it does not?  

As agent, it is my responsiblity to tell the homeowner to try.  And in all sincerity I pray that it does work for them.  I'd rather lose the listing if it means the homeowner get to stay in their home.

For those that thought they did not have any opinions left - when the President announced his new program that is set up to help as many people that are facing mortgage problems and of losing their property -- this is really a good thing.  Although some will not get the help because they either will not ask for it, have already lost their home, the property is not their primary property, or they just don't qualify under the new plan.

Everyone have the right to try.  So if the property is already listed, or going to be listed as a short sale -- i believe it is wise for that homeowner to go on and list the home in parelle to trying to get a modification.  Because we have seen it in the past that the homeowner still did not get help from the lender.  Having the property listed is just being one step ahead if it should come down to still needing to sell their property - short sale.

The big question is:  Should it be disclosed that the homeowner is trying to get a loan modification?  And I believe the answer is YES! After all... the name of the game is... DISCLOSE, DISCLOSE, DISCLOSE!

Rosemary Brooks, Family Realty Group - the Mother and Daughter Team (866-543-0461)

 

 

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Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Rita, yes we must disclose everything we are aware of.  Who knows if they'll qualify for the Obama loan mod plan -- most buyers won't and CA will be still shocked by all the foreclosures.

Apr 27, 2009 04:52 PM
Alix Pinzon
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086

Hi Rita,  Good reblog.  How are you feeling about HVCC?  I've been blogging on AR, trying to get people to contact their senators.  There's an amendment in the Consumer Finance Act of 2009 that could kill HVCC, but we need people to contact their senators.

Nov 21, 2009 05:59 PM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Rita,

I was just going through my AR Associations, and you were the very first one back in 2007!  Thanks.

Mike in Tucson

Aug 04, 2011 03:34 AM