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Potential roadblocks and common mistakes with short sales

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Editor's note: With the collapse of the subprime lending market leading to tightened credit, many are wondering what happens to the millions of loans that are expected to default or more importantly, what happens to the homes and the people who bought them. In this four-part series, Inman News looks at what the lending industry is doing to help people get out of loans or get back on their feet and how some real estate agents are making this their specialty. We'll go in-depth on short sales, REOs and forbearance programs. (Read Part 1, Part 2 and Part 4.) Real estate agents and homeowners considering a short sale of a property should be aware of potential problems that can occur and common mistakes to avoid. In testifying before a congressional subcommittee looking into subprime lending in March, John M. Robbins, chairman of the Mortgage Bankers Association, noted that some two-thirds of all mortgage loans are securitized and sold to Wall Street investors. The third-party companies...