Special Risks When Negotiating a Short Sale

Realtors who assist borrowers should be aware of and warn their clients of one particular short sale risk. If the borrower was less than completely honest when using the stated income method in applying for the loan, this information may become apparent to the lender when the documentation (such as tax returns and paycheck stubs) are submitted to the lender in the application for short sale approval. This may put the borrower at great risk of potential liability.

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