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Real Estate Professionals and the Negotiation of a Short Sale

By
Real Estate Technology with http://www.medicalandspaconsulting.com

Real estate professionals must be exceptionally careful in negotiating short sales on behalf of their sellers.  There are many (thousands) of lawsuits pending in virtually every jurisdiction in which a homeowner has sued the real estate agent when the short sale negotiations did not culminate in a sale and the property goes into foreclosure. Right or wrong..and whether you agree or disagree with this trend, it is an inescapable fact that realtors are being sued.  In Los Angeles and Orange County California, there are so many lawsuits against real estate professionals that it prompted proposed federal legislation that would prohibit anyone with a financial interest in a home to negotiate the short sale. This includes the home owner and the realtors (since there is a commission).  Given this trend, it is confusing to me why a real estate professional will risk a lawsuit (and possibly their license) and negotiate the short sale. Hire a third party loss mitigation firm...they are better at it and you are insulating yourself from liability.

Comments(2)

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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Paddy - I agree that it's essential that those who negotiate short sales know what they are doing - AND - the Seller should always be advised - and acknowledge the advice in writing - that they MUST discuss their specific situation with an attorney and CPA or equivalent.

Feb 01, 2010 03:07 PM
Alix Pinzon
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086

You're probably right, oh ya you're an attorney, of course you're right.  Joking aside, it's so easy to get sued these days, one really shouldn't let the risks stop them from making a living. 

Feb 15, 2010 01:42 PM