A Word of Caution on Short Sales

Are you underwater and considering a short sale?

Annie Fitzsimmons, an attorney that gives general advice to members of the Washington Association of Realtors, cautions agents and their sellers who are considering offering a property as a short sale. There is a trend now for some lenders to allow the sale but not release the seller from repayment obligations. This is a complicated issue and the seller should surely consult with an attorney.

If such a seller is unable to make payments, the other alternative is to let the property go into foreclosure. Another situation where attorney advice should be sought.

The banks may have received billions of dollars in TARP or other recovery funds, but the application of such funds sometimes seems contrary to the design of the recovery.