...get away from "the deal" because it is going to end ugly.
A recent client and I were involved in a short sale offer that, on it's face, looked promising. The promise, however ended right there, and might as well have been a dark alley.
In what should have been a multiple offer-highest & best scenario, it turned out to be take the low-ball offer straight up as if multiple offers do not exist endeavor. As you can imagine, this put the listing agent and broker in quite the awkward position, and despite being strongly advised to proceed with a highest & best by the agent and broker, the short sale owner went with the option that best suited his keeping the house in the long run.
The whole thing smelled funny to both me and my client. While we could not confirm or even begin to demonstrate collusion, it sure did walk, talk and swim eerily similar to the duck it almost certainly was. So, we moved on, but that nagging feeling kept bugging me, and my client too for that matter.
We did find a great home on the same type acreage that even sat up a little better on the property. The due diligence period will soon expire and we should close by the end of the month.
Karma, however, had other ideas for the first property. The property was due to close this Thursday, but I received a call from the listing agent yesterday saying the deal had completely fallen through, and would my clients be interested in submitting a new offer. It seems that pesky little arm's length transaction affidavit became a problem for the buyer to sign and attest to. My clients having been advised of the property availability and being completely happy with the property we found, advised me to tell her thanks, but no thanks.
Sadly for the owner, this will most likely bring foreclosure into play due to all the lost time. Desperate times do not have to equate to desperate decisions, but desperate decisions do often equate to terrible outcomes.
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