Landmark State Decision in RE Agency and Disclosure Law

[bearishgurl]

[quote=urbanrealtor]Okay.
That’s it.
I have had enough.

1: Preliminary title reports (PR’s) are easy to get.

You totally don’t have to have an active transaction for a PR. I get them all the time for my short sale listings before I have a buyer.

2: A PR is not an authoritative statement of encumbrance.

A PR will generally show trust deeds and liens but not demands. Since you never know how much a place is encumbered without a demand, the PR is not much better than just the public records (or Realist). Generally a demand is lower than the full value (in my experience) showing on the PR. Further, if there were other non-liened obligations (eg: a year of back HOA dues) they might not even show up on a PR. Fail.

3: Banks can add stuff in that is not known to anyone.

I just closed a buyer’s purchase in Murrieta. The seller had $50k of equity. They had lost some of their income and could not keep up. Wells put them through no less than 5 different modifcation programs (all the while telling them not to pay). Eventually, the sellers got frustrated and gave up. When they sold to my clients, the bank added in over $40k in fees for non-payment (non-payment which was done at the bank’s direction). Those fees were in excess of liened amounts and did not show on any PR or public record. It meant the sellers walked with $5k instead of $50k.

4: The duty does not change.

The agent’s duty is still to show all the warts of which he is aware. Even if he was banging both the buyer and seller simultaneously, he still failed utterly to disclose a known material fact. Specifically, he concealed major negative equity to a client.[/quote]

Good post, UR. Agree wholeheartedly with what you are saying here. I’ve been trying to say same. You must have an “account” with a title company for discounted PR’s. You are giving your “short-sale” buyers excellent service!

FWIW, I have run across mtg statements from stated-income (neg am) loans taken out in 2006-2007 where the borrower owes MORE today than the amt shown on the face of their filed trust deed. And the borrower was NOT behind in their payments.

UR, would you say the Holmes ruling is a step in the right direction for consumers of real estate?

[SD Realtor]

SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************

Of course with your vast experience in short sales you also know that regardless of what many of the lien or demand amounts are, there is no telling what they will be when it is time to fish or cut bait. Certainly whenever there is a second lender involved NOBODY will know what they will accept until after the offer is submitted and the first has decided what they will carve out for the second which is usually not much.

Short sales are not for everyone. There is no gaurantee for any buyer to know exactly what all demands are going to be from all lienholders or otherwise until you get down to brass tacks. If you think that before you submit the offer you are going to know all of these items then you should not be involved in a short sale, it is not for you period. Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.

Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”

So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.

[SD Realtor]

SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************

Of course with your vast experience in short sales you also know that regardless of what many of the lien or demand amounts are, there is no telling what they will be when it is time to fish or cut bait. Certainly whenever there is a second lender involved NOBODY will know what they will accept until after the offer is submitted and the first has decided what they will carve out for the second which is usually not much.

Short sales are not for everyone. There is no gaurantee for any buyer to know exactly what all demands are going to be from all lienholders or otherwise until you get down to brass tacks. If you think that before you submit the offer you are going to know all of these items then you should not be involved in a short sale, it is not for you period. Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.

Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”

So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.

[SD Realtor]

SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************

Of course with your vast experience in short sales you also know that regardless of what many of the lien or demand amounts are, there is no telling what they will be when it is time to fish or cut bait. Certainly whenever there is a second lender involved NOBODY will know what they will accept until after the offer is submitted and the first has decided what they will carve out for the second which is usually not much.

Short sales are not for everyone. There is no gaurantee for any buyer to know exactly what all demands are going to be from all lienholders or otherwise until you get down to brass tacks. If you think that before you submit the offer you are going to know all of these items then you should not be involved in a short sale, it is not for you period. Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.

Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”

So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.

[SD Realtor]

SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************

Of course with your vast experience in short sales you also know that regardless of what many of the lien or demand amounts are, there is no telling what they will be when it is time to fish or cut bait. Certainly whenever there is a second lender involved NOBODY will know what they will accept until after the offer is submitted and the first has decided what they will carve out for the second which is usually not much.

Short sales are not for everyone. There is no gaurantee for any buyer to know exactly what all demands are going to be from all lienholders or otherwise until you get down to brass tacks. If you think that before you submit the offer you are going to know all of these items then you should not be involved in a short sale, it is not for you period. Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.

Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”

So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.

[SD Realtor]

SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************

Of course with your vast experience in short sales you also know that regardless of what many of the lien or demand amounts are, there is no telling what they will be when it is time to fish or cut bait. Certainly whenever there is a second lender involved NOBODY will know what they will accept until after the offer is submitted and the first has decided what they will carve out for the second which is usually not much.

Short sales are not for everyone. There is no gaurantee for any buyer to know exactly what all demands are going to be from all lienholders or otherwise until you get down to brass tacks. If you think that before you submit the offer you are going to know all of these items then you should not be involved in a short sale, it is not for you period. Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.

Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”

So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.

[bearishgurl]

[quote=SD Realtor]SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************[/quote]

The statements above are not HERE, SDR, in this thread. If I stated this in another thread, it is because it was MY experience that buyers deposit an earnest money check on short sales. I haven’t conducted any “short sales” since the “big banks” got all this “govm’t bailout money” to muck up the works with.

[quote=SDRealtor]. . . Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.[/quote]

Why are you accusing me of “scare tactics,” SDR? Haven’t many of these Piggs already submitted offers and got them accepted on “wishful” short sales that either did not go thru or they lost interest before they did? Don’t you think intelligent Piggs “know the drill?” Do you think any post I may have made regarding “short sales” on this forum is “scaring” potential buyers away from them? Aren’t they a good portion of the resale market at present?

[quote=SDRealtor]Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”[/quote]

I don’t buy that every agent tries to find out as much as they can before taking any listing. I think some are probably flying by the seat of their pants. And how do you know sellers are smart enough to answer all the questions correctly on this disclosure and/or their agents have enough knowledge to help them do so? If sellers just lost a collection or other suit or are about to, or owes back income taxes, how do they know this might affect their ability to convey title to a buyer?? You’re assuming sellers have legal training or that they even realize what is happening/just happened to them. Often they are ignorant, dumbfounded and just plain weary of collectors, so just throw all their paper in a corner or circularly file it.

[quote=SD Realtor]So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.[/quote]

SDR, your stmt above sounds like you think these poor Piggs are “impressionable” and don’t have a brain!

No, I don’t particularly see this case as “enforcing” the weak “safeguards” currently in place. I see this “landmark” ruling as eventually causing a “wholesale change” in the way short-sales are conducted in CA and lenders who do/have done business here will have to fall in line. I see CAR revising ALL their disclosure forms and addendums to do with short sales in the very near future. I also see the DRE mandating broker and salesperson continuing education and training in “chain-of-title” issues, debt collection, anatomy of a lawsuit and disclosure of the condition of title, including items which may be an imminent threat to conveying the title. I see listing agents playing “bad-cop” to their “delinquent” seller-clients, to cover theirs (and their broker’s) a$$es. I see buyer’s agents snooping up on a delinquent seller’s financial “situation” before they even write an offer on a “short sale” and also demanding multiple disclosures from listing agents before they write up offers. As time goes on and Holmes acquires “progeny,” this “disclosure” issue could morph down slippery slopes unimaginable to more recently licensed “boom time” agents/brokers who are “used” to having total “control” over the “flow” of information in a short-sale.

No, I’m not attempting to use “scare tactics” here. It’s just a sign of the times we’re living in today :={

[bearishgurl]

[quote=SD Realtor]SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************[/quote]

The statements above are not HERE, SDR, in this thread. If I stated this in another thread, it is because it was MY experience that buyers deposit an earnest money check on short sales. I haven’t conducted any “short sales” since the “big banks” got all this “govm’t bailout money” to muck up the works with.

[quote=SDRealtor]. . . Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.[/quote]

Why are you accusing me of “scare tactics,” SDR? Haven’t many of these Piggs already submitted offers and got them accepted on “wishful” short sales that either did not go thru or they lost interest before they did? Don’t you think intelligent Piggs “know the drill?” Do you think any post I may have made regarding “short sales” on this forum is “scaring” potential buyers away from them? Aren’t they a good portion of the resale market at present?

[quote=SDRealtor]Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”[/quote]

I don’t buy that every agent tries to find out as much as they can before taking any listing. I think some are probably flying by the seat of their pants. And how do you know sellers are smart enough to answer all the questions correctly on this disclosure and/or their agents have enough knowledge to help them do so? If sellers just lost a collection or other suit or are about to, or owes back income taxes, how do they know this might affect their ability to convey title to a buyer?? You’re assuming sellers have legal training or that they even realize what is happening/just happened to them. Often they are ignorant, dumbfounded and just plain weary of collectors, so just throw all their paper in a corner or circularly file it.

[quote=SD Realtor]So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.[/quote]

SDR, your stmt above sounds like you think these poor Piggs are “impressionable” and don’t have a brain!

No, I don’t particularly see this case as “enforcing” the weak “safeguards” currently in place. I see this “landmark” ruling as eventually causing a “wholesale change” in the way short-sales are conducted in CA and lenders who do/have done business here will have to fall in line. I see CAR revising ALL their disclosure forms and addendums to do with short sales in the very near future. I also see the DRE mandating broker and salesperson continuing education and training in “chain-of-title” issues, debt collection, anatomy of a lawsuit and disclosure of the condition of title, including items which may be an imminent threat to conveying the title. I see listing agents playing “bad-cop” to their “delinquent” seller-clients, to cover theirs (and their broker’s) a$$es. I see buyer’s agents snooping up on a delinquent seller’s financial “situation” before they even write an offer on a “short sale” and also demanding multiple disclosures from listing agents before they write up offers. As time goes on and Holmes acquires “progeny,” this “disclosure” issue could morph down slippery slopes unimaginable to more recently licensed “boom time” agents/brokers who are “used” to having total “control” over the “flow” of information in a short-sale.

No, I’m not attempting to use “scare tactics” here. It’s just a sign of the times we’re living in today :={

[bearishgurl]

[quote=SD Realtor]SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************[/quote]

The statements above are not HERE, SDR, in this thread. If I stated this in another thread, it is because it was MY experience that buyers deposit an earnest money check on short sales. I haven’t conducted any “short sales” since the “big banks” got all this “govm’t bailout money” to muck up the works with.

[quote=SDRealtor]. . . Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.[/quote]

Why are you accusing me of “scare tactics,” SDR? Haven’t many of these Piggs already submitted offers and got them accepted on “wishful” short sales that either did not go thru or they lost interest before they did? Don’t you think intelligent Piggs “know the drill?” Do you think any post I may have made regarding “short sales” on this forum is “scaring” potential buyers away from them? Aren’t they a good portion of the resale market at present?

[quote=SDRealtor]Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”[/quote]

I don’t buy that every agent tries to find out as much as they can before taking any listing. I think some are probably flying by the seat of their pants. And how do you know sellers are smart enough to answer all the questions correctly on this disclosure and/or their agents have enough knowledge to help them do so? If sellers just lost a collection or other suit or are about to, or owes back income taxes, how do they know this might affect their ability to convey title to a buyer?? You’re assuming sellers have legal training or that they even realize what is happening/just happened to them. Often they are ignorant, dumbfounded and just plain weary of collectors, so just throw all their paper in a corner or circularly file it.

[quote=SD Realtor]So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.[/quote]

SDR, your stmt above sounds like you think these poor Piggs are “impressionable” and don’t have a brain!

No, I don’t particularly see this case as “enforcing” the weak “safeguards” currently in place. I see this “landmark” ruling as eventually causing a “wholesale change” in the way short-sales are conducted in CA and lenders who do/have done business here will have to fall in line. I see CAR revising ALL their disclosure forms and addendums to do with short sales in the very near future. I also see the DRE mandating broker and salesperson continuing education and training in “chain-of-title” issues, debt collection, anatomy of a lawsuit and disclosure of the condition of title, including items which may be an imminent threat to conveying the title. I see listing agents playing “bad-cop” to their “delinquent” seller-clients, to cover theirs (and their broker’s) a$$es. I see buyer’s agents snooping up on a delinquent seller’s financial “situation” before they even write an offer on a “short sale” and also demanding multiple disclosures from listing agents before they write up offers. As time goes on and Holmes acquires “progeny,” this “disclosure” issue could morph down slippery slopes unimaginable to more recently licensed “boom time” agents/brokers who are “used” to having total “control” over the “flow” of information in a short-sale.

No, I’m not attempting to use “scare tactics” here. It’s just a sign of the times we’re living in today :={

[bearishgurl]

[quote=SD Realtor]SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************[/quote]

The statements above are not HERE, SDR, in this thread. If I stated this in another thread, it is because it was MY experience that buyers deposit an earnest money check on short sales. I haven’t conducted any “short sales” since the “big banks” got all this “govm’t bailout money” to muck up the works with.

[quote=SDRealtor]. . . Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.[/quote]

Why are you accusing me of “scare tactics,” SDR? Haven’t many of these Piggs already submitted offers and got them accepted on “wishful” short sales that either did not go thru or they lost interest before they did? Don’t you think intelligent Piggs “know the drill?” Do you think any post I may have made regarding “short sales” on this forum is “scaring” potential buyers away from them? Aren’t they a good portion of the resale market at present?

[quote=SDRealtor]Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”[/quote]

I don’t buy that every agent tries to find out as much as they can before taking any listing. I think some are probably flying by the seat of their pants. And how do you know sellers are smart enough to answer all the questions correctly on this disclosure and/or their agents have enough knowledge to help them do so? If sellers just lost a collection or other suit or are about to, or owes back income taxes, how do they know this might affect their ability to convey title to a buyer?? You’re assuming sellers have legal training or that they even realize what is happening/just happened to them. Often they are ignorant, dumbfounded and just plain weary of collectors, so just throw all their paper in a corner or circularly file it.

[quote=SD Realtor]So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.[/quote]

SDR, your stmt above sounds like you think these poor Piggs are “impressionable” and don’t have a brain!

No, I don’t particularly see this case as “enforcing” the weak “safeguards” currently in place. I see this “landmark” ruling as eventually causing a “wholesale change” in the way short-sales are conducted in CA and lenders who do/have done business here will have to fall in line. I see CAR revising ALL their disclosure forms and addendums to do with short sales in the very near future. I also see the DRE mandating broker and salesperson continuing education and training in “chain-of-title” issues, debt collection, anatomy of a lawsuit and disclosure of the condition of title, including items which may be an imminent threat to conveying the title. I see listing agents playing “bad-cop” to their “delinquent” seller-clients, to cover theirs (and their broker’s) a$$es. I see buyer’s agents snooping up on a delinquent seller’s financial “situation” before they even write an offer on a “short sale” and also demanding multiple disclosures from listing agents before they write up offers. As time goes on and Holmes acquires “progeny,” this “disclosure” issue could morph down slippery slopes unimaginable to more recently licensed “boom time” agents/brokers who are “used” to having total “control” over the “flow” of information in a short-sale.

No, I’m not attempting to use “scare tactics” here. It’s just a sign of the times we’re living in today :={

[bearishgurl]

[quote=SD Realtor]SDR, WHERE have I stated here that “buyers” are “putting out alot of money?” Am I missing something??

From BG –

“This “end run” after buyers have already committed to the transaction in the form of appraisal/inspection fees and lost time is what will need to be prevented from the get go to “Holmes-proof” yourself in the future”

“More importantly, how much time and money have the buyers wasted on this transaction that will never go thru in accordance with their purchase contract??”

********************[/quote]

The statements above are not HERE, SDR, in this thread. If I stated this in another thread, it is because it was MY experience that buyers deposit an earnest money check on short sales. I haven’t conducted any “short sales” since the “big banks” got all this “govm’t bailout money” to muck up the works with.

[quote=SDRealtor]. . . Furthermore scare tactics such as you will be putting out alot of money for appraisals/inspections before knowing everything are simply incorrect.[/quote]

Why are you accusing me of “scare tactics,” SDR? Haven’t many of these Piggs already submitted offers and got them accepted on “wishful” short sales that either did not go thru or they lost interest before they did? Don’t you think intelligent Piggs “know the drill?” Do you think any post I may have made regarding “short sales” on this forum is “scaring” potential buyers away from them? Aren’t they a good portion of the resale market at present?

[quote=SDRealtor]Every agent tries to find out as much as they can before taking any listing, short sale or otherwise. In fact the your entire moaning session has nothing to do with short sales and everything to do with disclosure. Page 2 of the CAR RLA under seller representations COVERS EVERYTHING including, “other pending or threatened action that may affect the Property or Sellers ability to transfer it.”[/quote]

I don’t buy that every agent tries to find out as much as they can before taking any listing. I think some are probably flying by the seat of their pants. And how do you know sellers are smart enough to answer all the questions correctly on this disclosure and/or their agents have enough knowledge to help them do so? If sellers just lost a collection or other suit or are about to, or owes back income taxes, how do they know this might affect their ability to convey title to a buyer?? You’re assuming sellers have legal training or that they even realize what is happening/just happened to them. Often they are ignorant, dumbfounded and just plain weary of collectors, so just throw all their paper in a corner or circularly file it.

[quote=SD Realtor]So don’t make it sound like this “landmark case” is the first in trying to establish this. Stop it! If realtors are lax in not trying to make sure that the Sellers representations are not totally covered when they take a listing appt then shame on them. However you make it sound like this is some new thing, that this landmark case will change the way everything is done. This “landmark case” happened to ENFORCE what is already in place.[/quote]

SDR, your stmt above sounds like you think these poor Piggs are “impressionable” and don’t have a brain!

No, I don’t particularly see this case as “enforcing” the weak “safeguards” currently in place. I see this “landmark” ruling as eventually causing a “wholesale change” in the way short-sales are conducted in CA and lenders who do/have done business here will have to fall in line. I see CAR revising ALL their disclosure forms and addendums to do with short sales in the very near future. I also see the DRE mandating broker and salesperson continuing education and training in “chain-of-title” issues, debt collection, anatomy of a lawsuit and disclosure of the condition of title, including items which may be an imminent threat to conveying the title. I see listing agents playing “bad-cop” to their “delinquent” seller-clients, to cover theirs (and their broker’s) a$$es. I see buyer’s agents snooping up on a delinquent seller’s financial “situation” before they even write an offer on a “short sale” and also demanding multiple disclosures from listing agents before they write up offers. As time goes on and Holmes acquires “progeny,” this “disclosure” issue could morph down slippery slopes unimaginable to more recently licensed “boom time” agents/brokers who are “used” to having total “control” over the “flow” of information in a short-sale.

No, I’m not attempting to use “scare tactics” here. It’s just a sign of the times we’re living in today :={

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