How bad are things in Fairfield County?

I can’t reveal the source, but I will tell you this: many (hundreds of)  homeowners in our neck of the woods have registered complaints that their lenders are screwing them – they won’t accept short sales from workers under fifty, because they figure they will eventually make money again. Illegal? You bet, but that’s what’s happening.

7 Comments

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7 responses to “How bad are things in Fairfield County?

  1. Stanwich

    Take a look at today’s WSJ (NY Metro section) on price declines since last year in major NYC suburbs….top of the list is Greenwich CT.

  2. Back Bid

    Chris-

    Which part is illegal? Using the borrower’s age to determine their decision on a short sale or refusing short sales in the first place?

  3. Hey CF

    At the closing table, can’t the lender tell the seller in a short sale that they have to pony up assets (such as a 401K) to help make up the short fall? If so, then the under 50 crowd is really in trouble. I know there is a tax liability in a short sale, (imputed income), but why a lender says no makes no sense.

  4. armonk

    That is a good business decision. The decision to do a short sale is the lender’s not the homeowner’s.
    I don’t see where there is any question of legality.

  5. cos cobber

    i agree with armonk. while each situation is different, accepting all short sale deals is obviously a stupid move for banks. they should however, becareful not to have a policy that takes the age of the short seller into consideration. i dont know if its illegal or not, but its not going to sit well with the public and politicians when an insider tries to blow the whistle.

  6. OldG99

    Chris,

    A couple of years back I became aware of a property that went through a short sale, and was involved in 2 separate transactions – one for the house from the investor, and another for the fixtures in the house from the original owner (about 20% of the total price). How often does this happen with short sales? How is the transaction recorded (sale price)?

    Old G

    • I thought that particular deal was noting but a bank fraud, OldG and I wanted nothing to do with it. But it’s pretty real – not worth losing a license, real estate or law, for this.