Homeowner: Planning to do a "Strategic" Foreclosure? Not so Fast...
By Regina P. Brown, M.B.A., Broker, Instructor
(MBA Broker Consultants)
Mr.& Mrs. Williams decided NOT to accept my buyer's offer on their short sale listing. They said they were "fed up" dealing with their bank, the foreclosure process, the long wait time for short sale approval (this would be their 4th buyer, as the first 3 fell out of escrow).... they didn't want to haggle with the bank any more, they were afraid of tax penalties (although they were wrong), and had already filed for bankruptcy and had it discharged. Their choice now: To simply walk away and allow the bank to foreclosure on their home. It's called a "strategic foreclosure". And the Williams were choosing a Foreclosure instead of a Short Sale. Or so they thought.... A week after their scheduled Trustee Sale auction date, I checked the public records through www.ForeclosureRadar.com and...
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