WHO CONTROLS THE SHORT SALE?
Who Controls the Short Sale?
In this environment of the short sale it seems apparent that the bank controls the sale. Some might say the buyer controls the sale. My opinion is that both statements are primarily incorrect. The seller owns the house. The seller must sign the contract. The seller must sign the deed. Of course, if the seller can't sell and the bank forecloses, then the bank will likely have the REO and the sale is now with them - as the new owner. The issue is that the bank is the "reluctant" owner. The bank has already determined (by working with the seller and buyer in the short sale process) that it is in the bank's best economic interest to sell the house outside of the foreclosure process and prevent an REO occurance. If the bank won't go down low enough and tries to beat up the seller or seller broker - the seller can say NO. What choice does the bank have? It's like playing poker - who is bluffing?
The short sale enterprise is a game. There are usually 3 main players - the bank, the buyer and the seller. Assisting the players are the seller broker and the appraiser, and sometimes the buyer broker (if 2 brokers are involved). Playing the game takes expertise and knowing how the opposing players think.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@FLORIDA-COUNSEL.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers with Short Sales
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Unfortunately the bank has too much control - everyone is at their mercy. As many as I have done, the buyer rarely has any say, except to walk-away. The sellers are usually not in any position to do anything but let it go, and regardless, the bank wins.
I am actually working one short sale now that is a very small deal and the bank wants more than market value. They won't bend and we have nowhere to reduce costs. I'm not sure what is going to happen right now, but it's looking like they are going to have to take the property back.