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A Short Sale Nightmare in Anaheim Ca

By
Real Estate Agent with Mak Home Realty

 

When good people are faced with challenging dilemmas, sometimes, but not always do the “good’ things. I recently closed a transaction in Anaheim Ca. Like a lot of Anaheim houses for sale, this one was a short sale. I had never met the sellers. They had seemed to cooperate mostly with everything throughout the transaction, although I could tell it was not a happy time in their life from the beginning. My buyers were good people and understood the trying times the sellers were going through and did their best to be respectful and helpful. That all changed after we closed. The sellers moved out as requested one week before we closed. They had left some household items but said they would pick up the rest the following week. Everything was going according to plan. T

hen hours after we closed…The sellers moved back in! They changed the locks and moved couches, beds, and furniture back into the property. I took the deed, along with the escrow papers to the police to show evidence of ownership and asked for eviction assistance . Guess what?  The police like to get involved as much as anyone else would. “Possession is 9/10ths of the law” was a quote they used a lot. My new homeowners were suddenly landlords and had to start the long process of eviction. That is right.  The sellers had found a way to take advantage of the buyers in a big way. Even though I had written up my purchase agreement that the sellers had to move out before close of escrow(and they did), they moved back in and exploited California tenant laws. Think about this on your next short sale transaction.  There are ways to protect your client and yourself if you expect it to happen. 

 

A lot of Anahiem houses for sale are short sales and we handle quite a bit of them.  This was a highly unusual transaction. 99 percent of the time we can avoid nightmares like this transaction because we can anticipate issues before they arise.

 

Read how this all ended.  http://activerain.com/blogsview/3103257/a-short-sale-nightmare-in-anaheim-ca-part-2-the-conclusion

 

 

Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

OMG that is the first time I have heard of this technique!  I hope your buyers have lawyered up already, and wish them luck for a speedy eviction.

Mar 21, 2012 09:16 AM
Amy Soto
LPT Realty - Riverview, FL
CDPE

That is crazy! First time I have heard of that!  I guess changing the locks the minute after a closing is a good recommendation for a short sale...

Mar 21, 2012 09:39 AM
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Wow...keep us posted on the outcome! I would think the sellers are trespassing? Just curious...what would you have done differently to protect your buyers besides changing the locks...

Mar 21, 2012 09:42 AM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Good reminder to all of us to tell our clients to change the locks immediately after closing.  You don't know who has keys or what they will do.

Apr 12, 2012 10:10 PM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Kevin,

 Great post and it was nice to talk to you last week. Please call me if you have any questions. We are all here at ActiveRain to help you.

Apr 16, 2012 01:34 PM
Dave Korte
Mak Home Realty - Yorba Linda, CA
If we cant sell it...We'll buy it!

Thanks Kristin for the head-up on the groups.  There are helpful topics in that area of AR!

Apr 17, 2012 03:11 AM