Myth: A seller who qualifies for the Making Home Affordable program does not want to sign the Dodd-Frank Certification, so the lender will continue with the short sale approval.
False: Any short sale that is involved with the Making Home Affordable program, a homeowner must sign the Dodd-Frank certification. The form requires that homeowners give information to the lender over the last 10 years if they are money laundering, tax evasion, and/or felony larceny. The government will do a background check on all levels, so it is important not to lie or one can face felony charges by violating Federal law.
The most important part of a short sale or any real estate transaction is that all parties are truthful because the lies can come out 7 years down the road and investigations can start. Although a seller may be frustrated with their mortgage payments, lack of lender cooperation, or market value, a homeowner need to follow the legal process or can suffer once the market mayhem settles down. CDPE Realtor’s, like myself and short sale team member Karen Para, can help a struggling homeowner who is looking for a foreclosure alternative.