Special offer

You want me to WHAT? You Little "Fockers"

By
Real Estate Broker/Owner with KD Realty - 408.972.1822 CA DRE#01366594

You want me to WHAT? You Little "Fockers"

I am the listing agent for a San Jose Short Sale that is due to close escrow on 4/13/2011.

Contingencies are due to be removed on 4/4/2011. This is the day I received a call from the buyers' lender.

Purchase is "as is" and the short sale lender approved the price based upon a full appraisal - not a Broker Price Opinion.

Buyers signed the entire disclosure package which included all permits on file. Sellers fully disclosed what work needed to be done before the City would issue a final permit on the entire addition. I disclosed this in my Agent Visual Inspection Disclosure (AVID).

Buyers and Buyers' agent now claim they did not know there was not a final permit saying "We don't know how to read them."

Buyers' lender calls me the day the contingencies are due to be removed and asks me if I am willing to give the buyers $2,500 from my commission so that we can close. She went on to say that she and the buyers' agent have worked really hard for 5 months and want to get paid. The conversation continued as follows:

Me: Sure - I'll pay $2,500 if it means a successful short sale and my clients avoid foreclosure. I'm not happy about this because sellers and I have fully disclosed and the buyers signed all the disclosures 5 months ago. We have been operating off the belief that the buyers fully understood what needs to be done to get the final permit from the city. Whose job is it to ensure the buyers understand what they sign BEFORE they sign it?

Lender: The loan docs are already drawn. Would you be willing to pay the buyers $2,500 out of escrow?

Me: Absolutely not. That is an illegal kickback

Lender: I know. [giggle]

Me: Then why did you just ask me to participate in an illegal activity and risk my license and professional integrity?

Lender: We have been working hard on this for five months and we want to get paid. [Now I am using everything I have within me to contain myself.]

Me: Let's be clear about one thing: I have been working this file for over a year now. I want to be paid too. Not only has the lender cut my commission - now you are asking me to contribute $2,500 to the buyers under the table. You know as well as I do that the buyers have known about the permit status before they wrote the offer; that what you are asking me to do is illegal; and the sellers home will most likely foreclose if we do not complete this short sale.

My clients hired me to help them avoid foreclosure. My clients have moved out of the property long before they are required to because the buyers were afraid they would not move out. We have complied with all disclosure laws and with every request the buyers have made. The buyers have contacted me directly numerous times throughout this process. Where is the buyers' agent? What is the buyers' agent doing to help satisfy his clients?

Lender: You need to call Mr. Thomas [name has been changed to protect the little "Focker."

Me: Indeed I will. I will call him right now.

Enjoy the humor I tried to find in all of this!

 

You may search San Jose homes for sale on my Exclusive San Jose Homes website.  I stongly recommend that you hire an agent to represent you. Working with the listing agent does not mean you get the representation you deserve.  The listing agent works for the seller.  

If you need to list your San Jose home for sale, let's discuss my documented approach to listing homes and how my strategy brings top dollar for your home. I may be reached at my office 408.972.1822.  

 

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Comments(103)

Kathleen Lordbock
Keller Williams Realty Professionals - Baxter, MN
Keller Williams Realty Professionals

Anything and everything can and does happen in the Short Sale world or just real estate in general. Sometimes we need to walk away from our long year of work and keep moving on ethically!!

Apr 07, 2011 04:26 AM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Buyer's remorse is one thing. Buyers negligence is another. Yet they are within their contingency period. Tough, tough situation for buyer and seller. But, as you have clearly stated, money under the table is not a solution.

Apr 07, 2011 05:19 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

"they" worked really hard...apparently not..."they" didn't even tell them the rules...duh..

Apr 07, 2011 05:38 AM
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

Not only "Little Fockers, but the "Despicable Ones." What was the final result?

Apr 07, 2011 05:59 AM
Christine DeLay
Bransom Real Estate, Azle, Tarrant County, TX - Azle, TX

Didn't we just bail the banks out? Did they still not learn not to be crooked?

Apr 07, 2011 06:33 AM
Larry Costa
Century 21 Classic Gold, Carver MA - Carver, MA
Realtor, MA Real Estate

Seems to me the buyer's agent should be paying this. It there clients.

Apr 07, 2011 07:02 AM
Erick Blackwelder
Cell: 703-677-1120 - Woodbridge, VA
Text or call Erick now at 703-677-1120.

Have you ever noticed that folks selling by short sale are the same folks who have a multitude of BIG flat screen TV's all over the house?

They claim they can't pay the payment, but they have plenty of money to buy $2,000 flat screen TV's for every room in the house, plus 32" LCD TV's in the bathrooms.

When either party proposes a commissiondectomy on me, I say, "I'll take less commsssion if the seller/buyer gives me their 50" plasma TV with surround sound system.  If I'm going to hand over money, it will be to BUY SOMETHING and get value for the commissiondectomy."

Erick in Virginia

 

Apr 07, 2011 07:51 AM
Morris "Bill" Austin
Team Price Real Estate - Dripping Springs, TX
Exceptional service is my standard expectation.

Unfortunatley I can't say "unbelievable" like many of you. Turn them in.

Bill

Apr 07, 2011 08:03 AM
Lori Fleming
Golden Spike Realty - Ogden, UT
CRS.,GRI.,Epro.,CDPE,SRS,.MRP

I would say fer the love... I am also helping with short sales....it is so hard to give the news to our client that we will not make it and their home is going to foreclosure. 

Apr 07, 2011 10:04 AM
Melanie Ross
Coldwell Banker Solano Pacific - Benicia, CA
Benicia CA & Vallejo CA Real Estate, 707-319-2828

Kathleen, I hope we get an update on this transaction.  I am bowled over that the request was made.  You go Girl!

Apr 07, 2011 01:43 PM
Marshall Brown
Mid America Inspection Services, LLC - Fargo, ND
BSEE, CHI

I think I would be inclined to report this person to whatever authorities deal with this.

"If you can't do the time, don't do the crime."

Apr 07, 2011 04:07 PM
Melinda (Mel) Peterson
Grants Pass, OR - Bend, OR
The Savvy Broker - ABR, CRS

Kathleen ~ I totally enjoyed the humor you tried to find in all of this!

Apr 07, 2011 04:59 PM
Ric Mills
Keller Williams Southern Az - Tucson, AZ
Integrity, Honesty, and Vast Real Estate Knowledge

The buyer's agent made the mistake so He/she needs to pay up.  That is some nerve to ask you to contribute.  Let us know what happens please.

Apr 10, 2011 09:59 AM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

They have a word for this -- it's call extortion.  I would confirm the conversation in an email to that lender, copy the buyer's agent, and copy the buyer's agent's broker.  I would also file a complaint with the DRE.  It is one thing to do wrong - it is another to do it comfortably.  Make the complaint -- they should at least be uncomfortable whether or not the charge sticks.  It may give them pause the next time.  If the transaction then does not close (without the illegal payment) I would let them know there will be legal "consequences and repercussions."

Apr 10, 2011 01:57 PM
Anja Kerstens, 669.270.8034
Compass - Morgan Hill, CA
GRI, NHCB, CDPE, CHS. Silicon Valley Homes

Kathleen,

You kept your "cool" when others would have hung up the phone.  This should have been a recorded message.  I hope you confirmed your conversation per email. My guess is the buyers' agent was hiding behind the lender when they requested you give up your commission?  I can not believe this.  Sorry to hear that your deal might have fallen through at the last moment. As Tni suggested: file a complaint.  

I hate to admit that I was a buyers' agent for a short sale scheduled to be closed in three weeks and the listing agent worked hard on it as did I but the lender refused to move forward full well knowing that, as I disclosed to the buyers early on in the process, the room addition under construction didn't have permits and that it was easy to apply for them after close of escrow as the building inspector explained to me.

By-the-way: loved your little trailer.http://activerain.com/blogsview/2243654/morgan-hill-california-real-estate-market-report

 

Apr 13, 2011 06:03 AM
The Villages Realty
The Villages Realty - San Jose, CA
"Our Performance Will Move You!"

Nice post Kathleen.  Keep it up with the great information.  

Nov 28, 2016 04:57 PM
Eagle Ridge Realty
Eagle Ridge Realty - Gilroy, CA
"Our Performance Will Move You!"

Another great post.  Eagle Ridge Realty recommends Kathleen Daniels for your San Jose, California real estate needs.   

Nov 28, 2016 05:30 PM
Eagle Ridge Realty
Eagle Ridge Realty - Gilroy, CA
"Our Performance Will Move You!"

KATHLEEN DANIELS is your go-to Realtor if you are thinking of buying or selling a home  in Silicon Valley, CA.

Oct 18, 2017 07:07 AM
Nancy Frimann
Eagle Ridge Realty/Signature Homes & Estates - Gilroy, CA

You always write great localized posts.  Just checking out some of your past posts.  

Sep 07, 2018 09:06 AM
Nancy Frimann
Eagle Ridge Realty/Signature Homes & Estates - Gilroy, CA

Looking into the past at some of your older posts.  Good job on these.  I really enjoy them.

Sep 19, 2018 10:01 AM