Before you protect the world....begin with your client's earnest money

By
Real Estate Agent with PalmerHouse Properties & Associates, LLC 316636
https://activerain.com/droplet/4hlL

It all starts the same....you list a "haute" property in great condition that's price just right and you receive a FLOOD of phone calls.

This is exactly what happened to me, but one particular call stood out from the others...this agent spoke of her client who has a disabled child and they'd already looked at about 50 properties...and missed out on about 20 of those. Instantly, I felt her pain. She showed the home and quickly submitted an offer....A GREAT OFFER, might I add. She quickly explained that all of her client's financials and paperwork had been turned in to the lender and that we would definitely be in for a relatively quick closing.

MUSIC TO MY EARS!!!!

After about a week, I contacted the buyer's agent to get a status on the loan processing and was told that everything was going well and that we'd probably close a little sooner. My only concern was that the appraiser had not yet contacted me for access to the property.

After about another week, I contacted the lender to ascertain the status of the appraisal and received quite interesting news. As it turns out, the buyer's loan had not yet been submitted to underwriting because they were awaiting a credit re-score. The lender advised that she informed the buyer and her agent of this prior to them placing the home under contract....just a little pertinent piece of information that the buyer's agent failed to disclose. In fact, her loan pre-approval letter failed to disclose the same doggone thing!!!

The sad part of the entire ordeal is that the buyer is outside of all of her contingencies and due diligence period....which means that her earnest money is non-refundable at this point if this doesn't close. When I reminded her agent of this, she instantly became enraged that the seller would even consider keeping the buyer's earnest money deposit "after all that she'd been through". My only response to her was that her client was in this position simply because of her inability to remain honest with all parties involved and since she was so incensed about it, maybe she should personally reimburse her client's earnest money!

Just can't make this stuff up! SMH!!!

Posted by

 

Paving YOUR way to the American dream....brick by brick!!

 

Logo

 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Georgia Coweta County
Tags:
realtor
metro brokers
newnan real estate
coweta real estate
vanessa calhoun
newnan short sales
coweta short sales
homes in newnan

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
725,130
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Bad representation, this is gambling with the buyer's money if this agent had not informed the buyer of what might happen if the loan or appraisal would fail outside of the contingency period.

Buyer could possibly lose the earnest money because IT'S IN THE CONTRACT and buyer DID agree to the contract A.K.A. the Residential Purchase Agreement (RPA).

May 30, 2014 05:41 AM #1
Rainmaker
80,961
Vanessa Calhoun
PalmerHouse Properties & Associates, LLC - Atlanta, GA
Your Greater Atlanta Marketing Guru!!

Definitely!!! It's totally the Buyer's agent's fault for not protecting her buyer's earnest money. Because of privacy laws, lenders can only provide limited information to the
Listing agent, which is why we primarily rely on Buyer's agents to provide honest information during the lending process. Just a shame!

May 30, 2014 05:47 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
80,961

Vanessa Calhoun

Your Greater Atlanta Marketing Guru!!
Ask me a question
*
*
*
*
Spam prevention