Q &A

June 6th, 2011 at 11:30 pm

Q: (Rita Erangey)       I wrote an offer on a short sale. Despite repeated attempts to speak with the listing agent, I was only directed to an assistant who told me my offer would be presented on at least two occasions. Finally, in speaking with the so called office manager, I was informed my offer had been sent to the bank along with three others for the bank to review. I asked for a copy of my fully executed contract and was told that I would receive it the next day. One week later and nothing. At this point I do not know the disposition of my offer and have asked my manager to call the listing office on my behalf. Any suggestions?

A:       Rita, I feel your pain. This problem is very common in short sales. Unfortunately, there is not much you can do besides get your manager involved and continue to call and e-mail the listing agent. Sometimes, in this context, the “squeaky wheel” does get the best results. Of course, it would be inappropriate to go directly to the bank, since the seller has not given you permission to talk to their lender. So, keep calling and have your manager try. Of all the things I have seen, the manager to manager communication seems to be the most effective. Sorry I can’t give you a better answer.

Q: (Mert Guin)       If a buyer defaults on a short sale after removing contingencies, who gets the deposit? Seller, bank or broker?

A:       Mert, in this context, the short sale is no different than a regular deal. The bank’s involvement only relates to their acceptance of a certain payoff at close of escrow in return for a reconveyance of their deed of trust. In your case, since the buyer breached, there is no close of escrow or payoff and the seller’s lender is therefore uninvolved. As a result, the deposit goes to the seller like in a normal equity sale.

Q: (Phil Morris)       I just got a call from a client who wants to short sale her condo which has been a rental. The tenant just vacated and I am about to take the listing. Seller informed me that she has met with an attorney and are about to file for bankruptcy. How will the seller’s bankruptcy affect our listing and ability to sell the condo?

A:       Phil, a bankruptcy totally changes the sale of a property. Even if you have a listing, typically the Bankruptcy Court needs to approve both the listing agreement itself and the entire concept of selling the property. Additionally, any purchase agreement will need to be approved by the Court. As a result, if you are at the beginning of this process, I would stop and have the seller consult with her attorney to decide the best way to proceed. The attorney may want to get Court approval before you do anything. Of course, you should follow the attorney’s instructions when they are received and contact us if you have any questions.

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