Profile picture for Veronica Lexy

What is proper practice on short sale?

A recent transaction over an extremely lucrative short sale whose location I will keep confidential because I do not have authorization to reveal the identity of all parties involved left me with many questions as a person seeking to buy a house. xxxxxx xxxx represented the current owner, a person in a particularly vulnerable position and condition. The listed price was ridiculously low for the prime location (94709) and the soundness of the property, and so a huge crowd of both honest house-seekers and rapacious investors showed up for the half-hour of showing on the sole day the property had opened. She did not make a personal appearance, nor did the official listing agent, xxxx Xxxxxxxx. When two of her associates (one of which claimed to work for xxxxxx  xxxx, one of the company's agents) arrived late, they appeared to know nothing about the property, its status, and did not even show the whole house, since part was off-limits.


Follow-up was a nightmare. She operated through a deliberately confusing series of associates, refused to reveal to agents for other prospective buyers how many offers were coming in, lied about the cut-off for receiving offers (was this so as to be able to see what the highest bid was and then improve on that?), and, lo-and-behold, wound up holding the "winning" offer. She thus wound up representing both seller and buyer at the same time. I would not be suprised at all if the so-called "buyer" turns out to be a front person for someone in her family. To me, this is extremely fishy. Is this common? Should her practice should be investigated by the State?Should the banks holding the liens on the property be alerted that they could potentially be involved in a nasty affair?

  • July 21 2011 - Berkeley
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Answers (5)

Unfortunately short sales are advertised and unapproved prices making them look like "great" deals. The problem is banks want fair market value and they will sit till they get it. Disputing value is not easy with banks and normally they get multiple BPOs (broker price opinion) to establish fair market value. Consult with a short sale specialist before putting offers in on a short sale.
  • July 22 2011
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Profile picture for wetdawgs
There are definitely fishy short sales out there.   If you have facts you can provide to a board of Realtors or to the lender on the property, then do so.   At the moment it sounds like a situation poorly handled
  • July 21 2011
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A recent transaction over an extremely lucrative short sale

If it was a short sale, they would still need approval from the lender. If it appears that the lender was defrauded, then you should contact the state attorney general.

However I would caution you about making comments in public that could be construed as libelous or defamatory to another persons character and business as the consequences can be quite costly.
  • July 21 2011
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Profile picture for Michael Helton
If what you say is true, I would refer the issue to the CA Real Estate board.  You cannot be sure of the facts, but it does sound very odd.

Situations like this are exactly why I think an agent should never be able to represent the buyer and the seller.
  • July 21 2011
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Profile picture for Bill Fletcher
I tried writing earlier but my smart phone wouldn't save the answer.  anyhow, I feel badly that you had such a nasty experience. Unfortunately there are unethical people in my profession who give the rest of us a bad name.  The only remedy that I see is for the rest of us to report them to the Board and perhaps the DRE.  That way they get the message that the rest of us won't tolerate that kind of behavior. I think that your experience is replicated often in the real estate business, and it shouldn't be,  Most of us are hard working honest people who value our clients and do what is necessary to meet their needs. I think it would be a good idea to talk to yur agent about filing a complaint...Or doing it your self. Good luck and try not to get discouraged.  You'll find a good property and this is a great time to purchase.
Best wishes and good luck
Bill
[edited by Zillow moderator to remove website]

  • July 21 2011
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