Lenders are selling second mortgages and home-equity lines in default to
collection agencies that have the right to collect this money potentially
for decades."It's a big business, and investors are coming out of the woodwork," says
Sylvia Alayon, a vice president for Consumer Mortgage Audit Center, which
analyzes mortgage documents for lenders, advocacy groups, and attorneys. Real estate professionals will be doing their short-sale clients a big favor
if they urge them to get professional advice before they sign agreements,
Alayon says.A new government short-sale program, which takes effect Monday, aims to
prevent banks from reselling this debt. Sellers covered under the program
will receive notice that secondary lien holders have received part of the
proceeds of the sale "in exchange for release and full satisfaction of their
liens."Source McClatchy/Tribune News, Jim Wasserman (04/19/2010)
collection agencies that have the right to collect this money potentially
for decades."It's a big business, and investors are coming out of the woodwork," says
Sylvia Alayon, a vice president for Consumer Mortgage Audit Center, which
analyzes mortgage documents for lenders, advocacy groups, and attorneys. Real estate professionals will be doing their short-sale clients a big favor
if they urge them to get professional advice before they sign agreements,
Alayon says.A new government short-sale program, which takes effect Monday, aims to
prevent banks from reselling this debt. Sellers covered under the program
will receive notice that secondary lien holders have received part of the
proceeds of the sale "in exchange for release and full satisfaction of their
liens."Source McClatchy/Tribune News, Jim Wasserman (04/19/2010)
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