We recently processed a short sale for a struggling home owner located in Florida. We obtained short sale approval for the first lien holder who, in turn, agreed to pay the second lien holder $2,000 for a $45,000 balance. The second lien holder asked for a Seller contribution of just under $400 and, in turn, would completely forgive all remaining debt and would not seek a deficiency judgment. This arrangement was put in writing.
When the Realtor representing the Seller learned that the lender was requesting the contribution, he went ballistic and tried any/all means of NOT requiring the Seller to come in with the additional funds.
While I understand that the Agent is working in the best interest of their client; for just under $400 it seems like a "good deal" to the Seller. The Seller has indicated that they have availability to pay the contribution, and agreed to pay said funds; but the seller is being discouraged in making such a payment by the Agent.
Again, I understand that this Agent is supposed to be working in the best interest of his client, BUT, is this Agent willing to "step up to the plate" and pay a future deficiency judgment in the event that the property is foreclosed or if the bank should agree to a different type of short sale approval at a later date requiring a deficiency agreement?
The moral of the story: While the Real Estate Agent should always focus on obtaining the best resolution to a transaction, sometimes the best resolution may incur nominal costs -- to walk away from a $45,000 obligation with less than $400 out of pocket seems like a pretty good deal to me! It also seems like the Agent is setting himself up for a potential future liability.
Oh well, just another day in paradise ---
Coastal Real Estate - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL
That is unreal - I can't imagine anyone not willing to pay $400.00 if they had the ability to pay it in return for the bank forgiving the remainder of the loan.
Dec 17, 2010 04:03 AM
PureWest, Inc. - Livingston, MT
Another day in Paradise....you're in Bozeman?
All joking aside, I agree with you. So often people have trouble distinguishing between is this a good deal or is this the best deal I'm going to get. Although the sellers agent may not consider it a "good deal" for his client, it is probably the best deal he will get.
Best of luck with the transaction and have a wonderful Holiday season.
All best,
Jason
Dec 17, 2010 04:07 AM
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