Friday, August 27, 2010

Fremont Short Sale Negotiator Tactic Hurt$$$

I was going to wait until it closed escrow, but my Fremont short sale negotiator pulled a fast one. And I wanted to write about it. I also really do think it was the negotiator and perhaps the short sale lender together on this one.

Some time ago, I was helping a Fremont CA home buyer look at homes. We looked at a few good ones along with others that may not have been top on her list of a good Fremont real estate deal. There was one other home I was not going to show her because it was not ready. It was one of my own homes for sale in Fremont. It was a short sale, like some of the others.

Long story short, after much discussion about the home in Fremont that I had for sale, she really wanted to see mine. She bought my short sale listing and during the negotiations with the short sale lender it was disclosed that I was the agent for both buyer and seller--a bit easier to swallow when it is a short sale because the seller just needs approval and to be forgiven of the debt instead of getting a high net profit.

After the lender discovered the dual agency, they wrote back and said I was only going to get half of my percentage of the commission instead of the whole commission. They wrote, "sorry, their rules." and that was that.

Our office did not take this lying down. After a few calls and some firm words, it was remedied to my satisfaction. I found out later that this was a new tactic negotiators are allegedly using. I know this because my sources revealed that an earlier escrow with the same short sale lender just closed with dual agency (both buyer and seller represented by one office) and was paid full commission. I never used that piece of evidence in my dispute, but I was ready to.

The short sale lenders are perhaps praying on the tired disposition of agents who have become exhausted after months and months of work with commissions dangling by a thread. A lot of agents see that anything is better than zero when it comes to getting paid.

So, short sale lenders out there. Give a listen. Agents work very hard contrary to what some may feel. We make real estate move and fully represent our clients seriously. Lately, it seems like you are simply throwing us a small bone for a job well done. I will be glad when this short sale era goes away. By Jeff Pereyda

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