A settlement doesn't look as good on your credit as paying your debt off, but it's better than having it hanging over you.

Keep in mind that while George may not have much to lose in terms of assets today, I assume his plan is to have plenty of assets in a few years.If George were sued today (while he has no assets), and if George were to incur a large settlement against him, he'll be putting some/all of his future assets at risk as well.Legal entities not only can protect you from losing what you have, but from what you will have in the future as well...

The bank can easily require the closing agent to ensure they are notified prior to settlement of any transaction involving the assignment of any sale contract, that's why a closing agent will likely want disclosure and notifications for the bank.

Negotiated settlements would normally include a confidentiality agreement, if for no other reason than to keep others from lining up at the trough.

A short sale is a negotiated settlement, so less likely that a PMI company will go after them for a deficiency..

I found that many realtors don't understand that their goal at the end of the day is to get paid and that only happens if everyone gets to settlement.

Never had a closing agent say they would not close the settlement either.

Fortunately they’re in last position to the mortgage and tax lien and are willing to negotiate a settlement.

My area will tolerate five percent of the purchase price or less and be credited toward that sale price at settlement.

After that they state they must schedule an appointment with their attorney who will then get 7 of their 9 board members together to decide if they will take the $300 offered settlement.