Any great ideas for us? Just had unethical agent undercut our offer....
To recount, We have been working in this offer since October, got approval but the house ended up having major issues. So we had to resubmit a lower offer in February. That was when I stepped in as the contact person with chase due the inadequacy of the listing agent regarding short sales. I got things escalated and the trustee sale stopped. This was the third we had gotten the trustee sale stopped. The listing agent has done very little except on our direction take the lockbox off the house and meet the BPO agent with the stack pages documenting the needed repairs. BPO came in at %k less than our offer. We spent over $1000 in inspection fees. and have gotten all the info together from the seller and revised HUD etc. to get the deal done. On Monday, Chase calls, the file is going to the investor and they expect an approval letter early next week on our offer. Obviously, we are relieved.
However, also, on Monday, the listing agent states he has an cash offer coming in at higher than ours. We find out the agent has no license due his felony conviction and call him on it.Today, he brought an agent with him to be the new agent, he pressured the seller in to signing the offer, Chase has said they will review it with our offer.
While we have been trying to push the deal through, he has been telling anyone who would listen the details of our offer and soliciting high offers. So here we are.
Any suggestions to save this deal for us....we have worked very hard....obviously, this is unethical behavior on the listing agents part. He has stated blatantly to my agent that he wants a closing before he goes to prison and of course, he will get both sides of the commission out of this deal.
The seller wants us to get the property..He knows we have worked very hard for him and us..but felt he had no choice but to submit the offer for fear that the bank would hold him accountable if he didn't let the agent submit the higher contact because they would make more money.....
Do you have any tips, ideas, or suggestions that might help us to beat this guy..and get the sale? What do you think will happen?...I just can't stand the idea of this guy ripping this away from us.
We are considering upping our offer if the negotiator will let us.
Thanks
Replies to This Discussion
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Permalink Reply by Laura Rencher on
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Also what about tortious interference...does this apply? We thought it didn't because the contract is not binding until the bank approves it. but what do you all think? I NEED EVERYONE's IDEAS on this one. Thanks
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Permalink Reply by James Lockard on
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It has been my contention on issue like this that the first buyer has a contract with the seller so how can the seller sign a second contract? The bank approval is a contingency in the contract the same as any other contingency. I have had this happen as the listing agent and I was adamant that the second buyer was a back up offer only and would not be submitted to the bank and he contract not signed. This has happened to me as a buyer agent where my client was the first buyer as your situation and my buyer threatened to sue the seller's agent and the bank for breach of contract. My buyer never followed through and let it slide and bought something else.
I am not sure how this can be legal. Let's suppose once an offer for any short sale is accepted by the bank at a low price,then what is to stop me from bringing in an investor buyer of mine at a slightly higher price and submitting it to the bank? It is complete chaos. I can't believe there are still no written rules and regulations governing short sales.
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Permalink Reply by Celeste ODea on
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The Contract, once signed by the buyer and seller, is a legally binding contract (primary offer). Third Party approval is a CONTINGENCY, just like a home inspection is. Any additional offer signed by the seller is a BACK UP OFFER. In the event the primary offer falls thru the back up offer becomes primary. For unethical practices, just tell the other agent that you are reporting him to the Real Estate Commission. I agree with James. You cannot have two executed contracts on the same property unless one is specifically a back-up and an Addendum included.
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At this point I think the buyer is so angry he would like to sue...However, I am not sure this would work. I think with short sales contracts are not binding until the bank approves them...Since we didn't have the approval in hand.......is legal action an option?
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Yeah...well the guy has already lost his license....I guess I could file a report with the real estate commission on the new guy...but I am not sure any of that is going to stop Chase from choosing his offer. They have it. Just knowing it is there, They are going to reject ours and pick up that one....
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I don't understand how you "stepped in" to cover for the listing agent. Is it your listing? Chase can't review the cash offer unless it is specifically indicated as a back-up offer to the first. Why was it submitted to Chase in the first place? Who is the listing agent responsible for doing this - you, or the other person? A lot of confusion here as to roles. The seller can ONLY SIGN ONE OFFER, and the rest MUST BE BACKUPS #1, #2, etc. Chase also needs to know that the person who wrote the cash offer is not licensed. That's a direct violation. How could the listing agent submit this if you took over? What is the listing agent doing about this?
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I am the daughter of the buyer. I already had a relationship with the seller. When the listing agent wasn't doing what was needed such as escalate the file do to a pending auction, the seller agreed to let me be authorized to do so...and I did. The listing agent didn't seem to care and our offer was not going to make it due to the pending auction unless someone did something. He submitted the original offer then basically dropped the ball. He lost his license last week due to a felony conviction when we called him on this he got another agent to step and present the 2nd offer to the seller and to the bank. They instructed the seller to call the bank to ask about submitting the offer. Yes it is very very confusing. The seller did sign TWO offers. I forgot to add my agent has been supporting me throughout the situation. Although I have learned a ton while reading this forum obsessively for 7 months.
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You are the daughter of the buyer? If you have a relationship with the Seller, get the seller to terminate the listing agent and hire an experienced short sale agent because the listing agent isn't qualified and is not licensed to practice real estate. This is a no brainer. The seller cannot sign 2 offers - both are legally binding contracts. What State are you in?
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Listing agent is out of the picture..(other than collecting his money).seller did sign two contracts upon recommendation by agent and both are at Chase and are being reviewed. Seller feels some strange allegiance to agent anyway......yes, I would have fired him a long time ago.
I am most concerned right now about how to deal with the two contracts that are at Chase and in final review. I don't really think Chase is concerned about the legality of having two contracts...they only want their money...RIGHT?
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I agree this is a mess. I am not agent...nor am I acting as agent. I have not represented myself as an agent to ANYONE. I have told chase I am working with the buyer's realtor with the authorization of the seller which is true. I have not done any "Negotiating" I have simply done what a real estate admin would have done to follow up on a short sale package. So please don't come down on me. I don't think I have done anything that is unethical here. This house would have foreclose three times if I had not been in the picture.
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Yep! I agree with Harry. It still references back-up offers, and we don't know what the laws are in Georgia. How did you know Laura was in Georgia, Harry?
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