[quote=CA renter] . . . It’s very easy to root out fraud; problem is, so many fraudsters are making money, there are too few people willing to stand up for what’s right and fix the system.[/quote]
Absolutely agree with this, CAR! In CA, Holmes v Summer (2010) 188 Cal.App.4th 1510 should take care of this. (Still waiting on the CA Assn of Realtor’s depublication request to be shot down by the Supreme Ct – any day now, lol).
The existence of a “bribe” needed to be paid directly to the sellers in order to make a “short sale” deal go through should be made available (along with the complete condition of the title, record of seller’s recent payment defaults, along with the Transfer Disclosure Statement) to the buyer(s), thru their agent PRIOR to them wasting their time placing an offer.
IMO, a “bribe” that needs to be paid to delinquent sellers in order to make a “short-sale” deal go thru, however small or large, for whatever purpose, is a material fact regarding the condition of the property/title which should be disclosed to potential buyers from the get go, BEFORE they write up their offers, so they can address satisfying a problematic “very short” 2nd TD holder or for the purpose of “walking $$” for the deadbeat sellers.
In CA, the seller and their most senior lienholder (who has the ultimate decision over the filing of an NOD/NOS and effecting a trustee’s sale) has full control over whether to proceed with non-judicial foreclosure. The “figurehead” sellers in these cases are merely “squatting tenants” with their names on a grant deed which they must convey or lose.
In these “short-sale” cases, it’s dicey whether a defaulted-upon lender will make out better by leaving the delinquent trustor in the property for many months while they attempt to sell “short,” (sometimes EXTREMELY short) or just avail themselves of their timely right to non-judicial foreclosure.
If I was the beneficiary of a non-performing trust deed and note, I would waste no time in foreclosing and then market the property or put tenants in it and move on ASAP. I could care less about all the sob stories of the defaulting borrowers. Conversely, if I was 90 days late on my OWN mortgage, I would fully expect an NOD to be filed and the foreclosure to proceed as allowed by law.
“Sellers” don’t control this type of sale. The sellers most senior-lienholder and the buyers do.
