In a recent transaction it has become quite clear that when you expect everything to go smooth it doesn’t, for an example; listed a home for short sale, Indy Mac the lender. After establishing the connection with the lender and obtaining a full price offer on the short sale all came to screeching halt.The lender had decided not to honor the short sale request of the borrower, who had attempted twice and failed at a loan modification and employed an attorney for Bankruptcy proceedings for a total delay of 29 months with no payments. In asking why the bank representative indicated that because of the length of time in delaying for a resolution, the investor had already lost enough and short selling would only increase the loss. So foreclosure was the investor’s only option. Forget the fact the homeowner was trying to work something out, new owner gave the foreclosed homeowner 3 days to vacate and no money for relocation.This foreclosure eliminates the homeowner any of the tax protections and could allow for the bank to seek a deficiency judgment, if they wish. A successful short sale would have afforded some protection under the Mortgage Debt Forgiveness Act and Homeowner Bill of Rights. What does this mean? If you are behind on your mortgage and are not active in seeking a resolution you need to get serious the banks are! Call me to discuss the options you have available. My team includes a Real Estate Attorney, Certified Accountant, Mortgage Professional all available at no charge.