March 19th, 2010
Remember my post on March 16th that discussed people in distress paying off their credit cards and letting their mortgage payment go. Well, that strategy may come back to bite them if they try to sell their home as a short sale later on. Lenders are now checking to see if sellers requesting short sales are also delinquent on their other bills. If not, they might not be as anxious to approve the short sale. Another example of unintended consequences. Beware.