The first part of this story has a bit more background, but in essence, the agent submitted a ‘lower, pretend offer’ (her words by the way), before receiving and submitting my client’s offer to the bank. My buyers had met her at her open house, where she’d told them she’d hear back from the first lender in two weeks, and that the second would need $8000 to remove their lien. She’d done business with both banks and was confident the response time would be swift.
Once my buyers heard that she’d started the short sale process with this ‘pretend’ offer, they were willing to wait it out, deeming the timelines to be shortened, with the possibility of acceptance at a lower price point. However, it was 5 weeks until we heard anything at all.
The bank countered that bogus low offer, at which time the agent let the bank know that the original buyer ‘walked’ and submitted my client’s offer. My clients were getting antsy – they had to renew their lease or give notice. We weren’t getting weekly updates from the listing agent, our short sale addendum was about to expire and they were reluctant to extend without a better understanding of where they actually were in the process.
10 days later, the agent informed me that the bank had entered a counter (This was B of A). She forwarded a copy of the Equator worksheet, where I could see the bank’s counter. This is where it went sideways in my opinion. She’d entered in a 3% closing cost on the buyer’s side. We’d also communicated that the buyer would pay $8000 to the second lien holder – she showed that as a cost to B of A. That wasn’t in my buyer’s offer! I was really irked that she did not convey the actual price and terms of the real offer. This is now the second time that the agent is lying to the bank!
When my client saw this is writing he was disgusted. He felt that she had created delays with these crazy tactics, and he was adamant. ”That wasn’t my offer! I want her to submit my original offer!” I totally agree – I can’t imagine how this sort of misrepresentation helps anyone. He gave her 3 days, and 3 days only to respond, expecting more game-playing on her part.
When day 3 was up, he was done. And he let me know that while they’d been trying to buy in the Livermore market since August (they’d lost two others to multiple offers), prices had come down where they currently lived – some 50 miles away, and not an area I work). Meanwhile, I learned that the bank actually had accepted my buyer’s true offer price and terms.
Ultimately, if these buyers find a good home closer to where they work, that is the best thing for them. I’m considering filing a complaint with the DRE, and my former client wants to help in anyway he can. This whole experience has really got me thinking that many of the delays with short sales are pinned on the banks and their processes. This particular case shows me that the problem was the listing agent, not the bank. I’m sure this happens more than we’d like to believe.
So what’s your take – would you file a complaint on this one?
Comments (13)Subscribe to CommentsComment