As we actively work Jacksonville short sales constantly, we are seeing frequent changes to the way banks are dealing with and responding to this type of real estate transaction.
We are seeing the banks start to tighten up on exactly who is purchasing a short sale. They want to make sure that the homeowner does not get their hands back on the house after the sale has taken place. They don't really seem to care who owns it or lives in it after the sale has taken place as long as it is not the current homeowner or family member, however, this is evolving as we speak. If you are involved in a Jacksonville short sale situation you need to be aware of this.
Take Wells Fargo, for example, as recently as May we did not have any type of addendum to the sales contract dealing with this on our Wells Fargo short sale transactions. On the one we are currently involved in, an "Affidavit of Arm's Length Transaction" has been added to the bank's addendums to be signed by all parties.
This particular addendum states, "No party to this contract is a family member, business associate, or share a business interest with the mortgagor." It also adds, "The Buyers and Sellers nor their Agents have any agreements written or implied that will allow the Seller to remain in the property as renters or regain ownership of said property at anytime after the execution of this short sale transaction.
Comments