Agents & Sellers Beware Of The Bank In A Short Sale
Agents And Sellers Beware Of The Bank In A Short Sale
Real Estate agents and sellers need to beware of the banks and the mortgage companies that are involved in today’s short sale market. It is not so much what they are saying that is turning heads, buy what they are not saying might cost you.
It has almost become routine for the banks and mortgage companies of today to cut the commissions of real estate agents in their desperate efforts in order to try and keep their losses to a minimal. But now I’m hearing of some transactions which actually get to the closing table and the agents are finding out that their commission was either reduced further or even removed altogether without be given any notice.
This is a blatant disregard for those agents who worked their hands to the bone and now aren’t getting what they expected or deserved. It was the real estate agent who brought the buyer to the house. It was the agent who negotiated the deal. It was the agent who supervised or oversaw that all of the inspections were done in timely fashion. And it was the agent who kept in constant contact with the mortgage broker so the closing package would make it to the title company. So where would the bank or mortgage company be, if not for the agent? They would be up the creek without a ready willing and able buyer to put it mildly.
Sellers are being affected also because it seams that the banks feel that it is okay to wait till closing to notify the title company that an unsecured note must be signed by the seller agreeing to pay back the deficiency over a specified time period. This should be discussed and explained prior to closing with the sellers in order for them to decide what may be in their best interest, or if there are other alternatives, such as being given a 1099 instead for the amount of the deficiency.
In short, always keep in close contact with the bank when involved with a short sale. Ask them to send it to you in writing over the fax or through e-mail when they say that the deal has been approved. Don’t just take them for their word, as we are finding out that their word isn’t worth the paper that the promissory note was written on.
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