I don't know about you, but the real estate business is difficult enough without being lied to and cheated at the same time. My most recent closing on a short-sale property was one that I won't soon forget. Let me make it clear that 68% of my business in 2010 has been short-sale or foreclosure properties. I've encountered a lot of challenges closing these transactions along the way, but nothing like this last one.
Let me start out by saying that the transaction involved a first and second mortgage and HOA. The listing agent lied to the selling agent and buyer three times about the lenders accepting the offer just to keep the buyer in the deal. We were all told it had been verbally approved and the signed contract would be forthcoming in 2-3 days. The first time 2-3 days stretched into 2-3 weeks only to find out there was no verbal acceptance, just daily excuses to keep the buyer from walking.
These shennanigans went on for four months by the time we received written approval from both lien holders. I'm sure the buyer would have bailed had she not been getting a terrific home that she loved and at a terrific price. She was also up against the Home Buyer Tax Credit deadline at that point. As negotiations stretched out over the months, the selling agent kept reminding the listing agent about updating the HOA fees that were due. She was literally told to mind her own business and not to tell her how to do her job.
Long story short, SURPRISE ... SURPRISE ... the HOA was owed $2,700 more than had been approved and according to the listing agent and her title company, wouldn't accept a penny less. This resulted in the lien holders requesting more money from the buyer & seller. Needless to say, the seller didn't have two nickels to rub together and the buyer had the ability to come up with another $1,500. At that point, the selling agent and I agreed to cover the balance to have the transaction close. All agreed and off to the closing.
Well, SURPRISE ... SURPRISE ... again. Upon review of the HUD-1 Settlement Statement, we discovered the numbers didn't jive with what was agreed to. We requested the HOA Esstopel letter and discovered the HOA had accepted a short payoff of the $2,700 and the buyer, selling agent and myself were still being shown making the additional contributions. By the way, the HUD -1 hadn't been approved by the lien holder at the time of closing either.
Did I mention the listing agent didn't show up for closing and when the closing agent was questioned about the numbers, they had no answers either. We closed the mortgage portion of the transaction and funded in escrow. We all left late Friday afternoon with assurances it would all be resolved on Monday. Unfortunately, that turned out to be a "Little White Lie" too as it took ELEVEN DAYS to resolve before the lien holder agreed to the HUD-1 and distribution of funds.
If that wasn't enough, the listing agent became invisble and vanished. The title company kept throwing the blame on the lien holders, but upon further detective work we discovered the listing agent and her title company were playing games to get out of a previous commission concession they had made. They were attempting to get their concession back at closing. Needless to say, the buyer and selling real estate company are now investigating the whole matter further.
As I eluded to earlier, the real estate business is tough enough without all professionals involved in the transaction being untruthful.
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