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Permalink Reply by Bryant Tutas on February 8, 2011 at 11:34am

Richard I'm not sure if the lender would have an issue but I hope the seller does.  It sounds like a huge conflict of interest. My problem is who would be looking out for the seller? You only get paid if the buyers loan closes. That's zero incentive for you to counsel the seller properly. Also, be sure to check your State's laws to see where they stand with licensing for short sale negotiators.

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Permalink Reply by Richard Kirk on February 9, 2011 at 3:45am

Thanks Bryant, points well taken.  I understand what you're saying about the possible "conflict of interest", however, in this situation my client becomes the seller and the listing agent, and nobody else.  In my experience, and most who do short sales, the biggest problem we face is the buyer "walking" after months of working on the short sale.  My goal would be to keep the buyer in the picture while getting the best short sale approval possible for the seller.  I would kind of look at it as one real estate office with 2 agents representing the seller and buyer.  Both work for the same company, and both have the same goal (settlement),  but both will be looking at for their respective client's best interest.  You're right, we wouldn't get paid unless the buyer's loan closes, but the seller won't be able to close unless they get an adequate short sale approval---with a buyer still on the other end.  And yes, every state is different regarding licensing.  thanks

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Permalink Reply by Jeff Payne on February 9, 2011 at 5:22am

Not sure I follow, your client becomes the seller and the listing agent?  I thought you were the buyers lender?

Richard Kirk said:

Thanks Bryant, points well taken.  I understand what you're saying about the possible "conflict of interest", however, in this situation my client becomes the seller and the listing agent, and nobody else.  In my experience, and most who do short sales, the biggest problem we face is the buyer "walking" after months of working on the short sale.  My goal would be to keep the buyer in the picture while getting the best short sale approval possible for the seller.  I would kind of look at it as one real estate office with 2 agents representing the seller and buyer.  Both work for the same company, and both have the same goal (settlement),  but both will be looking at for their respective client's best interest.  You're right, we wouldn't get paid unless the buyer's loan closes, but the seller won't be able to close unless they get an adequate short sale approval---with a buyer still on the other end.  And yes, every state is different regarding licensing.  thanks

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Permalink Reply by Richard Kirk on February 9, 2011 at 6:03am

Jeff---my client, regarding the Short Sale, is solely the Seller and Listing Agent.   Listing Agent is given my info and list of services after the contract is signed.  If agent and seller want to use the service, they can, and they become my client.  I am essentially working within a different group entirely than the Origination group.  Both of our goals is for the deal to close, with my interest being the best interest of the Seller.  Using this service is not part of the sales contract negotiations.  Does that make sense? 

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