I also said that we would make a couple of calls and report the incident due to the unethical behavior of the seller and their agent. Here are the details that have transpired.

Last week we received two separate communications from the bank/lender. The first one stated:

“We can’t entertain an offer that the homeowner had not approved and presented to us. This sounds like a bad situation but from a short sale perspective there isn’t much I can do to change the realtor’s behavior, I would recommend reporting him to the Realtor Board”

And the second:

The subject property had been in the short sale process until 4/3/09, when the buyer walked and at that time the file was closed. Since that time the agent nor the buyer have called in or sent any new offers. Submission of the offers is at the discretion of the seller. The seller must accept the offer and sign the purchase agreement, and then submit it to “bank/lender” for approval. The “bank/lender” cannot direct certain offers to the listing agent. We tell the agents that they should bring us the best offer for submission (usually the strongest buyer with the highest offer). The “bank/lender” has no right to set terms on the sale of the property until it is submitted.”

“As far as the request for funds outside of escrow, this would violate our short sale approval letter (once received) and void the approval. Also this would allow the “bank/lender” to accelerate the foreclosure process and possibly call the note due. Not to mention criminal/ethical violations for fraud. The marketing of the property as an approved short sale is a problem we are seeing but “bank/lender” does not have the authority to regulate this practice. This would be an issue for the agent’s broker, the local board of realtors and the department of real estate.”

Also today I reached the broker of the other firm to report the actions of his agent. He assured me he would speak to him and call me back. About twenty minutes later the agent called me to inform me that there was no longer a seller’s contingency for remaining in the property after the close of escrow. To which I said “what about the $15,000 you were seeking outside of escrow”? He just told me we could see the propertyagain this week and submit another offer, to which I replied “our buyers have decided not to pursue the property”.

The Short Sale Shakedown Continues is a post from: Up2Date