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I have an offer on a Short-Sale & need to extend. If I get a "NEW"agent, will it start from scratch?

Okay, I have an offer on a short-sale home and the offer expired because of form 22ss #2 clause. It states we gave the bank 60 days to respond otherwise contract is terminated and earnest money to be returned to buyer.

So we need to extend our offer to validate the contract.

Long story short (you can read my other posts for explanation of why we need a new agent), but we want a "NEW" agent to represent us and write an extension.

Does anyone know if I bring on a "NEW" agent, if this will start from square one with the banks and we will have to start all over again?
Our offer is the ONLY offer on the table.

I just found out yesterday there are actually 2 mortgages on this house. My agent once again neglected to tell us the truth. She said there was only one.
We have been waiting since January too.

So we need to extend our offer so we can keep moving forward, but we need a new agent.
If we just change agents and closing date but nothing else on our contract (offer stays the same, etc) will this have to start from scratch?

Thanks for your help..
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April 14 2011 - Everett
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Answers (7)

I'll take another approach here... You JUST found out that there are two mortgages.  Hmmmm... finding out this information is the responsibility of the Seller's agent, not necessarily the Buyer's Agent.  It would be great if the BA knew how to find this out.  Most should, but it is not required.

So now that you JUSt found this out... did the Seller's agent know?  If not, and this is news to all, then I would simply find another home to make an offer upon.

This tells me that the Seller's agent does not know what due dilligence is required in short sales.  this changes the numbers in the game.  And it simply tells me that the deal will eventually fall through anyway.

If the Seller's agent is not experienced with handling short sales, the national stats of a 25% success rate holds true.  Agents who KNOW what they are doing have a much better success rate.
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April 14 2011
I'll just respond with the same information that I posted on your other thread and clarify for you and sunny that the managing broker that I'm referring to in that post is the principle managing broker of the new firm.
Other post.
Find a new broker that you trust.  Go with them to their managing broker and describe the situation.  If the managing broker is willing to take on the legal liability, you are on the road forward.
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April 14 2011
First, I don't see the previous post as to your unhappiness with your broker... but those are water under the bridge issues: You are, so reasons are now beside the point.

Second, whether the attorney or anyone says it's not a case of procuring cause, ------ why not remove ANY question and ensuing hard feelings and in writing, tell your broker your proposal:

'We haven't been happy with our working relationship in this short sale process.' (Not the time to list the reasons.) "We are hereby terminating our agency relationship with you." (that's a legal action recognized in State of WA agency law)  "Our short sale offer has expired, as has that contract.  We 'have' (use 'done deal' terminology, so there's no open door to fix) hired another broker to represent us in buying a home. We have asked him to write another offer on this property, changing some of the terms we feel are needed.  It may never close, and we'll keep looking with him for other homes. However, if the offer on this home is successful our broker has suggested that she is willing to give you 15% (or 20%? but not in terms of 'paying a referral fee, which it wouldn't be) of whatever commission the lien holder agrees to pay the selling brokerage. We feel this is more than fair.

You can simply acknowledge your acceptance of this offer by return email and we'll give that email to our broker.

This simply extricates yourself TOTALLY from any head aches, and is a good transaction for your new broker without possibly having to spend a lot of time in the search. Fair (perhaps more than fair for your original broker, but get over that....) and very fair to have you not look over your shoulder nor your new brokerage)  Then go find a new broker who will agree to contributing some commission for helping to create a clean cut for you!

Good luck
Short sales are difficult in any case and unfortunate for you in this.
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April 14 2011
I agree that procuring cause will probably not be an issue given the circumstances, but your new agent should still know the details of your previous problems.

If your old agent used the NWMLS forms when you wrote the original offer, the contract Form 21 page 1, paragraph 16  and page 5 paragraph u. state that the agent listed at the bottom of Page 1 represents you, and Page 5 paragraph v. states that you agree that the commission is paid to the agent and brokerage at the bottom of page 1 (below paragraph 17.)

In order to have a new agent represent you, you need to have the new agent's information on page 1 of the Form 21.  I would recommmend you find a new agent right away, and ask them how to handle this.  Any changes to the old contract (including changes to agency representation) will require both buyer and seller signatures.

Good Luck
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April 14 2011
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Just so there is no confussion. This would NOT be a procuring cause. I have spoken to several attorneys and it is found that no procuring cause is valid.
Also we will not stay with the same company. They are horrible to work with and only care about $$ not us as clients. Unfortunately.

I just need a "NEW" agent so I can extend my offer and continue with buying the house if the bank approves our offer. :-)
But I don't want to start from scratch, because we are so close to hearing from the banks, hopefully.
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April 14 2011
If you extend your now-expired purchase contract, then you are obligated to using the real estate company that helped you write the offer originally, but you may be able to negotiate with the Designated Broker at the company to bring in a different agent to represent you.

If you go to a different brokerage company, then you will need to write a new offer.  But you may not be starting totally from scratch.  Depending on where the short sale negotiations are with the lenders, they may not even know that they are now working with a different purchase contract.

If you hire a new agent, make sure you tell them in advance that you had already written an offer on the property with another agent/brokerage.  They will need to know the details so they aren't blindsided by a claim of procuring cause from the previous agent.

Good Luck!
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April 14 2011
You are in an agreement with your agent.  If nothing else she has procuring cause for this sale which means she is probably going to get a commission if you ever close.
You seem like an articulate person:have you described this issue to her managing broker?  That would seem a lot simpler than spending time with an attorney which is the other alternative.
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April 14 2011
 
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