Short Sale Affidavits
TLTA learned that settlement agents are sometimes asked to sign short sale affidavits. In 2010, Freddie Mac started requiring all of the parties involved in a short sale transaction to sign an affidavit attesting that it is a true arms-length transaction and provide an indemnity in a case of mortgage fraud if there is a loss suffered because of a negligent or intentional misrepresentation made by the closing agent.In March 2012, the TDI Commissioner issued an order that signing these short sale affidavits is a violation of P-35 because "short sale affidavits seek assurances beyond the expected scope of title agents' knowledge." Read more about this issue below.
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