Closing Attorneys are Refusing to Sign the Short Sale Freddie Mac Addendum Item 13

By
Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827

Freddie Mac is turning down short sale closings and forcing houses into foreclosure.

The addendum requires that all parties: The closing attorney, the seller, the buyer, the Realtors and anyone who facilitated the transaction be liable for the deficiency if any mistakes were made by anyone in the chain.

Closing attorneys all over the country are refusing to close short sales with the Freddie Mac Short Sale Addendum Item 13.

Short sales are blowing up! E&O companies are refusing to insure closings if the parties sign the addendum. Well guess what? PARTIES ARE REFUSING TO SIGN THE ADDENDUM!

PARTIES, INCLUDING CLOSING ATTORNEYS AND ESCROW AGENTS,  ARE REFUSING TO SIGN THE ADDENDUM!

  • What has your experience been?
  • Have you gotten banks and Freddie Mac to remove item 13?

Eventually this clause will be rescinded or modified to make more sense, but in the meantime many borrowers will lose their homes to foreclosure instead of selling in a short sale.

See Richard Zaretsky's blog post for the details:

STAND-OFF WITH FREDDIE MAC OVER SHORT SALE ADDENDUM - ALTA GETS INVOLVED

 

Posted by

 

 

Dave Halpern, Realtor

The Dave Halpern Real Estate Group

Keller Williams Realty Louisville East

Website David.DavidHalpernRealtor.com

(502) 664-7827

 

 

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Topic:
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Short Sales Specialists
"Whacked"!!!
Club Chaos
Legal Aspects of Short Sales, Foreclosures, Loan Mods
Tags:
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Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

This is just another thing that could cause the short ssale to implode at the 11th hour. Bummer.

Oct 26, 2011 02:42 AM #1
Rainmaker
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Goran Utvic
606 Homes LLC | Chicagoland Brokers Inc, Chicago IL 60656 - Chicago, IL
We Buy & Sell Chicago Houses Fast

wow,  the government just doesn't trust anyone anymore do they?

Oct 26, 2011 04:59 PM #2
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Dave Halpern

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