[quote=SD Realtor]…This is a fundamental problem with short sales. I am not a fan of the system but there are agents that are much more adept then others with regards to getting short sales completed WITHIN THE CURRENT FRAMEWORK of how things are today. Can one argue that the first lienholder got hosed, perhaps even defrauded? Yes they probably can. Does this hurt overall comps in the neighborhood and piss off other homeowners there and even buyers who did not pursue the home aggressively? Yes.
It is what it is.[/quote]
SDR, I still have a couple of problems with this scenario and a question.
1. An offer just “happened” to be “selected” (not the highest) which paid 100% of the commission to the listing broker, “Maxum Realty.”
2. These out-of-area lenders being asked to “take it in the shorts” are obviously dumb@sses. They don’t need to own the property in order to get their own BPO out there to properly comp the property. Instead, they are believing the delinquent seller’s listing agent’s (friend/church buddy/relative?) bogus comps that are sent with an offer which will allow their broker to double end the commission. Not necessarily the HIGHEST, but the BEST for the LISTING AGENT/BROKER and/or consisting of special out-of-escrow “perks” for his/her deadbeat sellers (who should be grateful they are even getting out of their [frequently ATM’ed to death] albatross). If the first TD holder had accepted researcher9’s offer, they may have been ABLE to satisfy the 2nd TD holder’s requirements.
Question: Are there any SOLD COMPS for the LAST 6 MONTHS which would indicate this property is worth $200k+ more? In other words, did the appraiser use the right sold comps here?
If I was looking in a very specific area to buy for as long as researcher9 has and I had at least a 20% downpayment and kept getting ignored in favor of “inside” or “seller’s agent-represented” buyers who offered less, I would take a stand, even writing the payoff dept of the 1st TD lender directly and mailing it certified – about ten seconds after the game was played against me, with a copy of my offer that was “rejected” (dated shortly after the listing went public), and also with any recent SOLD comps supporting my offer. In it, I would name the seller’s agent with her explanation why my offer could not be presented.
Since we still seem to have a ways to go to “wade” thru “short sales,” reform is needed in this area, IMO.
researcher9, I don’t recommend “joining them” so the listing agent can get your side of the commission, too, for defrauding the lenders. “Joining them” will just perpetuate more of this type of behavior which is already way out of control. Keep your own savvy buyer’s agent and your own counsel.
