. . . Quitclaim May Not
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Bruss has again misinformed readers (“Real Estate Q&A;,” June 16) by advising a condo owner to quitclaim the property to the lender, thus preserving his credit history from the taint of foreclosure or default.
Readers should understand that the standard Federal Home Loan Mortgage Corp. (Freddie Mac) and the Federal National Mortgage Assn. (Fannie Mae) loan applications used throughout the mortgage industry asks the applicant “Have you had property foreclosed upon or given title or deed in lieu in the past seven years?” Any person who has given a deed in lieu or participated in a short sale should rightfully answer “yes” to this question.
Lenders try to be flexible in the case of extenuating circumstances but only when an applicant exhibits honesty. Furthermore, Bruss’ advice that the condo owner pressure the lender not to report anything adverse to credit reporting agencies is unfair to the vast majority of borrowers who handle their mortgage obligations in an honorable manner.
ANNE ELLIOTT
Senior Vice President
CUB Funding
Calabasas
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