On buyer side of short sale and seller agent lets seller daughter handle bank contacts

I am concerned about a short sale that I am involved in on the buyer side. The selling agent took the offer and submitted it to the bank. There is a first and a second on the property. The firsts lender has agreed to a short sale due to a hardship involving medical bills. I asked the selling agent if the second was onboard. She said she didn't know as the seller's daughter is handling that end of the sale. The lender (I am asumming the first) told the daughter what they needed and that is what she submitted. She was surprised when I told her that as a selling agent, I usually work with both of the lenders on the seller's behalf and get authorization to do this from the seller. I told her I usually get with the second early in the process. She seemed a little defending when she said she asked the daughter if she wanted her (the agent) to handle this and the daughter said she would do it. Both lenders are national lenders and I believe that she is dealing with a servicer. I have an unsettled feeling that this is not a good way to handle this short sale. Should I be?

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Replies to This Discussion

Permalink Reply by Ben Racela on February 10, 2011 at 7:21am

In a short sale transaction it is always best to centralize communications with each lender and share your concerns as to why the daughter is attempting to negotiate with the 2nd. I would have a meeting with the actual seller and her daughter to ask your questions and also address theirs directly. What I'm afraid of is that she may accept terms that the 1st mortgage will not agree to. Also most 2nd mortgages will not move forward until the 1st mortgage provides some idea of what they are willing to pay them. I would also ask if her daughter has any experience negotiating a short sale and negotiating with the 2nd specifically. But be ginger when you ask that question as the daughter may be offended. Aflter all you are a professional and she (seller) is asking for you to help her out of this situation.

Good luck.

Permalink Reply by Daniel Harless on February 10, 2011 at 8:06am

You MUST always be the only one dealing with the bank. I have had deales where the agents think they are helping out but in reality you have "Too many hands in the pot!" Tell them to back-off and let you take care of all negotians. Their job needs to be getting the property sold. That's it...

Permalink Reply by Jeanette Becker on February 10, 2011 at 8:20am

I am representing the buyer. The selling agent is the one that should be doing the negotiation, in my opinion. I don't think she has training on a short sale especially the ones dealing with national lenders. I am afraid when I ask questions about the process, she does not seem to know how these are handled in the present market. She has been in real estate for almost 20 years. I want to protect my sellers and get them this home. I am at a loss as to where I can help move this along smoothly without offending the selling agent. I hope this clears up my position. Thanks for any input that you can give to help me. I don't want to tread where I shouldn't, as Daniel said, 'too many hands in the pot'.

Permalink Reply by Jeanette Becker on February 10, 2011 at 8:21am

Oops, I want to protect my buyers and get them this home.

Permalink Reply by The Negotiator on February 11, 2011 at 7:14am

I'm surprised that the root problem has not been brought up. While the short sale world is a challenge, we as Realtors need to do our homework before getting involved.Submitting an offer and then realize the negotiating issues is doing you and your buyer a dis-service. What you should be doing with ANY short sale is make phone calls and inquire about all the nuances of that short sale BEFORE WE SHOW PROPERTY OR MAKE OFFERS because every short sale is different. If you knew that this property was jacked from the beginning, I would bet you wouldn't even show that property to your buyer? Am I right?

Lesson learned here is do your homeowner and know what you are getting yourself and your buyers into!

But, to answer your question directly, it is really none of your business who negotiates the short sale (to be blunt). As a buyers agent you are not privy to any part of the decision making. It is the homeowners ABSOLUTE RIGHT to negotiate the short sale first and foremost. Now, on the contrary, talking about how the listing agent should know better and never allow a homeowner to negotiate a short sale is a whole new topic of conversation.

Good luck!

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