Special offer

Huh?

By
Services for Real Estate Pros with Lang Realty

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 ---

Posted by


Rick Schuster

Licensed Real Estate Broker - Jaycee Realty, Inc.
Licensed Title Insurance Agent - Home Guardian Title, Inc.
Licensed Mortgage Broker - Leading Edge Mortgage Corp

2101 NW Corporate Blvd, Ste 211
Boca Raton, FL 33431

561-206-2835 - via Google Voice
561-988-2546 -Fax
       

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Terry McCarley
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
Jason Frey
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