Signing Short Sale Documents …. The Seller = The Borrower

Take care when signing sellers involved in a short sale transaction. Some of the documents ask for the “borrower” signature. This in fact is the seller, the party you are signing in the current transaction …. however, in relationship to the loan that is being paid off, the seller is actually the original borrower.

For Example: Bank of America Short Sale documents include an Assignment of Unearned Insurance Premium which requests the borrowers signatures on the signature lines. This is BofA’s borrower, which is actually the seller in the transaction.

Confusing I agree, but think about it, the “seller” is doing a short sale, paying any proceeds of the sale of their home to BofA for the loan they owe on the house.  The “seller” is BofA’s “borrower” and must sign BofA’s short sale documents

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