Here in the Carson Valley, there are lots of agents trying to list short sales.
Some deals go really well, some deals fall apart through no fault of the listing agent (when multiple lenders can't come to agreement), and some agents are ambivalent.
We list and sell short sales in Minden, Gardnerville,Carson City, Dayton and beyond. We work our files ourselves. We know the effort it takes to get a short sale done. I have put a buyer in on a deal from time to time in a short sale. I know how it feels when the transaction drags out, and I know how frustrating it can be not to have regular feedback. I personally believe that short sale files should NOT be handed over to a third party to be processed, and most of that just comes from my own personal experience. No one works them as hard as we do. No one is as vested as we are. No one cares as much as we do. Yeah, we take it personal. The Sellers we represent are counting on that level of enthusiasm and determination. We even have laws on the books dictating who can negotiate a short sale.
According to NRS645F (modified by AB152), there are only 4 parties who can negotiate short sales:
1) A Principal to the transaction (Seller or Buyer)
2) A licensed real estate agent as a party to the transaction
3) Attorneys
4) Properly licensed individuals & companies per the Mortgage Lending Division
Title and escrow companies are not automatically covered under this law. If they want to negotiate short sales, they have to be licensed to do so by the Nevada Mortgage Lending Division. (Is yours?) So, back to my story...
I showed some property to some out of town clients and they focused in on a short sale offered for sale by a local listing agent who uses a local title company to complete all his short sales. He says he negotiates them, but he left the task of getting the foreclosure stay up to the title company. I quizzed the listing agent on the transaction and found out there were two loans, and that they had a deal before and that basically, they had approval previously but the buyer fell out. (The second wanted an additional sum of money to allow the sale to go through and the listing agent was willing to kick those funds in to make the deal happen, so basically he presented the short sale to me as if it had been an approved short sale.)
So we get into contract with him, and yesterday (not a week after we've written our offer and opened escrow), he tells me that the home is going to foreclosure sale TODAY. Well, my people are getting a loan so we're out. I ask some questions, and apparently, the first was never going to allow the second mortgage to receive the additional funds. The first will only allow $3,000 to go to the second - there's nothing new there. And the second wouldn't accept just $3,000, they wanted another small sum over and above that. So they were at an impasse last time around. So even if they had a new offer, they were still at an impasse and the short sale wasn't going to get approved.
The thing that has me peeved is that I spent time and energy putting buyers into contract on a property that could never get approved. In my opinion, that short sale should have been withdrawn from the market by the listing agent once it became clear that the two lenders could not come to agreement.
I'd like to know ActiveRainers, is that how you see it? I'll be okay because I still have ready, willing and able buyers. I feel really bad for the Seller. Was everything done to avoid the foreclosure? Did the listing agent communicate directly with the bank, or did he just rely on the escrow company to be his mouthpiece? If that was the case, is the listing agent exposed legally because a title company is not officially authorized to negotiate short sales?
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About The Author
Christianne Gordon, REALTOR®, CDPE, SFR is a Northern Nevada Real Estate Specialist that can assist you with the purchase or sale of real estate in Gardnerville, Minden, Genoa, Carson City, Dayton, and Reno/Sparks.
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Christianne Gordon, REALTOR®, CDPE, SFR, , PSC, e-PRO
Certified Distressed Property Expert - Short Sales & Foreclosure Resource - Pre-Foreclosure Certified
RE/MAX Realty Affiliates - Great Nevada Homes, Inc.
Direct: (775) 881-8223
Visit us online at GreatNevadaHomes.com or CarsonValleyShortsales.com
The information in Christianne Gordon's blog is deemed accurate but not guaranteed. Any individual considering a short sale should also seek independent tax and legal advice to get specific information as it relates to their personal situation. Christianne Gordon is a licensed real estate agent with RE/MAX Realty Affiliates serving the entire Northern Nevada region including Reno, Sparks, Carson City, Washoe Valley, North Valleys, Fernley, Dayton, Stagecoach, Minden, Genoa, Gardnerville, Smith Valley and Yerington.
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