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.


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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


    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


    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.