We were working with a buyer that liked a house listed as a "Short Sale". We made low offer, but as we explained to the buyer, by doing so, we would probably get a counter-offer as the Lender hadn't set a sales price yet.
The next day, the Seller`s agent contacts us and states that "the Seller isn't happy with the offer" and wants to submit a counter-offer! I explained to the agent that as a result of the Sellers being in arrears for the past 7 months, they are no longer the people to submit a counter. In a Short Sale, it is the lender who makes the decision, the seller no longer has a right to negotiate the offer. It was wrong for the agent to advise the Sellers that they still had this right. We further advised the agent that allowing the Sellers to get emotionally involved could lead them to Foreclosure!
It may be unfathomable for the Sellers to accept that they can no longer negotiate the sale of their home, however, it is the right they lost when they stopped paying the mortgage.
Another unfortunate problem with doing a Short Sale in today's market is that so many agents believe that once they get certified as a "Short Sale Specialist" that they are automatic experts! If they would only take the time to work with a an experienced agent and/or attorney that has handled numerous Short Sale transactions. Then they would actually know what they are doing. It would definitely be a great help to the sellers that are going through such a critical and stressful time.
In the case of my transaction, this seller rejected our offer and never had the offer submitted to the Lender. The property has been on the market for 12 months. At this rate, they will soon be in Foreclosure. We explained to the Realtor that he definitely did not help his clients by erroneously advising them that they had any right to negotiate. In fact, he probably just got them one step closer to Foreclosure.
In these time of economic duress, it is so important to work with a Realtor that has experience in Short Sale transactions. Not doing so could end up being very costly to the seller!
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