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Buyer Sues Lender Over Short Sale

Reblogger Georgio Konstantaras
Real Estate Agent with Prudential California Realty

Check out This Blog Post By Ms. Weintraub. What a Story!

Original content by Elizabeth Weintraub Sacramento Broker DRE #00697006

short sale lawsuitI'm certain there are plenty of real estate agents, present company included, who are tickled pink over this development. Seems a lender agreed to a short sale and then tried to back out of the contract. Sound familiar to anyone?

Aurora Loan Services, based in Littleton, Colorado, has been sued by a buyer, Ribsy Productions, a Solana Beach, CA-based real estate company, for reneging on a short sale. The property is located in Tucson, Arizona. Apparently, Aurora agreed to a short-sale offer of $158,000 on a $587,000 secured loan. That's a 73% drop in the mortgage balance. Somewhere along the line, Aurora changed its mind. Hello, lawsuit.

It's about time that short-sale buyers stopped taking this kind of treatment from banks. You know, if the bank doesn't want to agree to a short sale, then don't. But don't make promises and later break them, I say.

I've heard of banks coming into escrow with last-minute changes to the HUD-1. Those changes include refusal to pay a commission. And agents have to to agree at that point because they have a fiduciary responsibility to their clients to uphold their client's interests above their own. But banks also pull out last-minute punches on the poor buyers who have been waiting forever and a day for a response.

I say it's about time. And I hope the buyer wins.

elizabeth weintraub land park real estate agent in sacramento

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