This Short Sale Negotiator Isn't Doing His Job

This Short Sale Negotiator Isn't Doing His Job

Here is a question that the Texas Group Realtors recently received.  "I am in the middle of a very long negotiation with Chase.

The seller had me to put a clause into the contract stating “upon approval of short sale by sellers’ lender, lenders, and/or affiliates, client, or heirs will be released from any monetary shortages or deficiencies from said sale of stated property upon successful closing and transfer of title from that date and forevermore.”

Email beth@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

The short sale negotiator at the lender, has advised me that he will reject the file and close it out if we don’t remove this from the contract.  What do you think? How should I pursue this?"

Here was our answer: I think the negotiator is getting his ego involved. Many investors waive promissory notes. He is out of line (and breaching his lender's fiduciary duty to the owner of the loan) if the following applies:

1. If it is the loan owner's policy to not pursue a deficiency.

2. If accepting this short sale will net the loan owner more money than a foreclosure.

If those two things apply, then this negotiator is in breach of their fiduciary duty to the loan owner. You and I don't have millions of dollars to pursue a lawsuit, but we can contact the loan owner directly to let them know what is happening.

If they are going to lose money not accepting the short sale, then they need to know about Chase doing a lousy job.

Now, the negotiator has the authority to demand a promissory note depending upon who the owner of the loan is. Find out who the owner of the loan is.

Fannie, Freddie, FHA, VA, etc. Fannie, Freddie, FHA, and VA will let the borrower go free from all future liability. Obviously that doesn't apply if there is Mortgage Insurance. If the investor is one of those entities, then tell the negotiator that you will be contacting them directly.

When a bank should accept your short sale. A bank should accept your short sale when the following rules apply. All banks and servicers have a fiduciary duty to the investor of the loan.

If they own the loan themselves, they have a fiduciary duty to their stockholders. The duty is to get that investor the most money possible. So, a lender should accept an offer if it will net the most money.

Here is how we can assure the negotiator that the offer will net them the most money. Your only job is to prove that to the negotiator.

Do that by showing them that the property has been on the open market for 60-90 days. We need to be able to show that the house was easy for buyers to see and other agents to show.

Ask them the following, "I'm an experienced agent and I've had this house listed for X days. The seller has lived there the entire time and kept up on the house. It looks good. We have had 43 showings since then.

Out of that, only 3 buyers expressed interest. Out of those 3 buyers, the current buyer is the one willing to pay the most money. I'm doing my job marketing the property.

With the current foreclosure case status, the home won't be foreclosed until June or July. When you foreclose on the house, the owners will move out. The house won't be kept up anymore.

The listing agent will be working on 20 other homes and won't be able to do as good of a job as myself. Do you honestly think the home is going to sell for more money at that time?

They will have to agree that it is a losing proposition.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at phillis@txhomerealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale Cedar Hill, Desoto, Lancaster, Glenn Heights and request a free consultation by email beth@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email phillis@txhomerealty.com to request a copy.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com.

Important Notice

Phillis Nealy and The Texas Group Realtors are not affiliated in any way, shape, or form with the government.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.