Not sure how the FB is the “seller” when it’s the lender that is losing money. IMHO, if it’s determined that there is going to be a short sale (underwater mortgage with inevitable default), then the LA should be representing the lender, not the idiot who owes money to the lender.
As a lender, I’d be pi$$ed if I found out that an agent was not sending me ALL the offers (especially the highest price and best terms offers) until it is in escrow. Seriously, there should be some lawsuits there, if that’s happening.
What they should do is have a period of time when potential buyers can look at and formally inspect the house. After that period, they will accept ALL offers and look at them during a one or two-week period. At that point, they should take the highest price or best terms, whatever the LENDER or lender’s agent decides is best. Basically, an auction, but stretched out over weeks instead of hours.
This would help expedite sales and get honest offers from honest buyers, without any kickbacks or deals between sellers, agents, new buyers, etc.
Too much room for fraud the way it’s set up now, IMO.
