Real Estate Agent with ,GRI, Kiser Realty - The La Cita Group

I am annoyed!  No more than just annoyed! Dissed and annoyed.

My customer had all of the ramifications of a short sale explained to him before he agreed to a short sale.  At the end of April, I submitted a short sale offer to his lender.  Considering the current market, the offer was huge, only $12,500. less than owed.  How good is that?  My first short sale had two mortgages, and both lenders lost more than $50,000.00.

The lender countered with a request that the seller sign a 12 year mortgage at 0.01% interest for the shortfall.  I called my customer and explained the counter.  He almost blew a gasket.  He said to tell them to "just foreclose".  I explained that the offer should be countered and that at its worst it was better than a foreclosure, because the bank would take an even bigger loss, his deficit would increase, and the bank could still come after him for a deficit judgement and that would be at about 11% interest.  

My customer was adamant, so now I'm sitting here having a little rant.

Having just told the bank what my customer told me to tell them, I feel a huge loss for my customer, who acts as if the grey stuff between his ears is leather.  Foreclose over $12,500?  You have to be kidding I wanted to say.  Foreclose,  and take a bigger and more expensive hit from the bank?  You have to be stupid!!!! I wanted to say.  But I gently agreed to my customers terms even THOUGH HE IS WRONG! WRONG! WRONG!   And never will be RIGHT with his mind-set.  

But... on the other hand, I should have prepared him better, and it is HIS LIFE, not mine.



Posted by

Jean C Kelly, GRI


Comments (3)

Susan Jackson
America's Network Realty Group, Inc - Sandy Springs, GA

Do Not feel responsible!! I have been there, and the seller just will not listen.   In this case the second lender wanted $5200, and he refused to pay it.  The first lender was not filing a deficeincy judgement.  This guy had no gray matter.

Jul 19, 2010 09:30 AM
Kevin Vitali
EXIT Realty Beatrice Associates - Middleton, MA
Helping Massachusetts Home Buyers and Home Sellers

The seller really needs to see the downside of a foreclosure.  Here in Massachusetts the bank has 2 years to file and 20 years to collect on a defeciency judgement.  The seller is bing spiteful and extremely short sighted especially when you are talking about relatively small amounts of money. 

Jul 19, 2010 11:58 AM
Jean Kelly
,GRI, Kiser Realty - The La Cita Group - Titusville, FL

HI Susan: 

Thanks for the feedback!  So many people out there in trouble, and I guess the distress clouds their judgement.  It's  a pity.




You are correct.  I went through the whole ball of wax with him.  I think I'll just wait another day and send him an email at the risk of repeating myself.


Jul 20, 2010 04:56 AM