HELP! Short Sale and Dual Agency Representation Corruption


By kibblesvicks   Follow   Thu, 6 Dec 2012, 7:12am   642 views   9 comments
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PLEASE READ MY PREVIOUS POST FROM TODAY, SO YOU CAN GET A QUICK HISTORY OF MY SITUATION and HOUSING MARKET CRISIS and BANK NEGIGENCE, AND MISHAPS.
Okay so now I'm in the process of short selling my home (haven't lived there in 4 years)with Wells The house has depreciated in value of about 40%!!!!!! since 2005 pinnacle inflation purchase prices.
Well I'm in the HAFA program and I have a short sale negotiator handling the case. As part of the HAFA program they cut me a check of 3,000.00 if I qualify to "relocate," or in this situation agree to sell the home.
Now, like any normal human being, if something is being offered I wanted to take advantage of it. I've had some correspondence in regards to an additional short seller "cooperative," "relocation" incentive program directly through Wells Fargo. I spoke to the bank about it and they kept referring me to the HAFA program until I kept probing and got the Wells Fargo negotiator to "admit" to an internal sellers incentive program!!!! I've heard incentives, depending on the bank, being given from up to 5,000 to 30,000!!!!!! That's crazy!!! Although, I've heard that Wells Fargo is one of the more stingiest in regards to this.
Anyway I have a buyer who I have already signed a contract for an agreeable amount of sale. HELP, Shady Dual Agent Representing me (seller) and buyer. I have been trying to short sale this home for 6 months. I am becoming much more savvy with the corruption and lies associated with a short sale from the realtor's perspective and the banks. My realtor initially had an "investor," that was going to buy the home. Come to find out that this investor was also acting as the negotiator (this is possible!). This means that this guy and realtor were working together to secure the lowest possible purchase price of the home. Simplifying this, this investor was bidding only against himself. Come to find out I wasted over 3 months waiting for this deal to get done until the bank ended it. Come to find out the bank got tired of the consistent low ball offers during the negotiating process. Now at the time I just wanted to get rid of the property and told her to sell it. Now I see that as her business friend she was also trying to "help," him out. Obviously she also wants to "double dip," and bring in only her "buyers," so she could get double with her commission. This is just some of the corruption going on with short sales and dual agents. It's so comical. This whole mess that we're in. This is happening you even have some homeowners negotiating with relatives to get the best deal for the house for them and then in return the relative or "friend," may give a monetary incentive (cash-money) to seller. CRAZY, but this is all true. THink about it, the banks still have NO clue of what's going on. I can tell you though the banks also get paid and negotiators get incentives for each short sale they complete, which furthers the corruption.
Following this debacle I spoke with the bank directly and now have a firm grip, daily updates from all involved. I also hired a short sale negotiator. Now this lying agent still has the listing but I let her know if it doesn't close this time around I'm requesting an unconditional release because 1 she is a liar, and 2 she is not working in the best interest of me the seller, she's working in her best interest. So she said she had a new buyer weeks ago, and I let her know in advance that any new buyer has to put in an initial offer very close to what the bank is asking for, so I don't tie up another 3 months in a "going nowhere" contract. So they come to see the home and she is saying "we" are going to put in an offer about 45,000.00 less than what the bank is asking for. I told her that this is what the other buyer did and that this offer had to be within 20,000.00 of appraisal and what bank wants because I wasn't wasting time.
Fast forward 2 weeks and now we have contracts signed for that amount. A lower offer was submitted to the bank, but we're hoping the bank comes with a counter-offer of what we signed the contracts for, this way we can just send them in right away.
Knowing the corruption that went on with obtaining my loan I don't feel bad for the banks. Plus Obama bailed them out with billions of dollars to get these home short sold. And they're not completely fulfilling their agreement. The banks aren't in the business of selling homes and definitely not in the business of owning them!!!!!
Homeowners (if that's what I'm still considered) like me (which are millions!!!) actually STILL have the vantage point over the banks because we STILL own these homes and much long delinquent loans. Like I said in my other post in can take up to 8 years in some cases for a house to foreclose, maybe even longer if you fight it with a forensic audit. This really only applies to homes that were purchased during the "bubble," or between the years of 2004 and 2006. The amount of times my loan was sold following the closing is laughable. My home was purchased in 2005. I had a 80/20 - 2 loan mortgage, which means that the banks have to foreclose on one loan at a time. It's crazy!!! I want to start over and reestablish myself and short sell this home, but can you blame me if I'm inquiring about short seller incentives, wouldn't you do the same?

ANY FEEDBACK about short sale process and the corruption affiliated with it. Just ask.

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  1. CaptainShuddup


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    1   8:41am Thu 6 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike  

    This is all nothing seven years, and a prepaid credit card wont fix.
    You made a stupid decision, stop trying to blame someone else.
    I read the previous post, you knew full well the mortgage broker was cooking your books and you went along with it. Just be glad that there isn't anyone going after all of the fraudsters from the brokers to the applicants who fabricated and signed off on fabricated loan applications.

    This isn't going to be "walk away clean and Scott free" episode.
    You say you haven't lived in the house for 4 years. You should have walked away back then, mailed the keys in, or something. You would be half way through Credit exile by now.

    Or you could just stay put and wait for the bank to foreclose. Which those folks make out better than everyone. All you'll have to do is wait just 2 years, and you'll be eligible for another FHA loan.

    You have several options and you're still young. Learn from you're mistake, take those experiences and learn from them. If you just try to run from them and do postmortem on them to shift the blame.
    Then you'll always be set up for failure.
    kibblesvicks says

    Homeowners (if that's what I'm still considered) like me (which are millions!!!) actually STILL have the vantage point over the banks because we STILL own these homes and much long delinquent loans. Like I said in my other post in can take up to 8 years in some cases for a house to foreclose, maybe even longer if you fight it with a forensic audit.

    You're not a victim here. You took a risky bet and you lost.
    Let me ask you one important question. Did you buy the house to start a family in and live in for the ages. Or were you planing on flipping it?
    Could you make the mortgage payments in the beginning, and what changed that you now can't?
    What have you been doing with the 4 years of rent money?

    I'm not judging you, but I don't feel sorry for you.
    If it were me, I would just walk and start rebuilding my sanity and credit.
    The stress of just buying a house was more stress then I ever care to go through again. I can just imagine what you're going through would be what I went through times 1,000. I'd find better ways to invest my time.

    Time heals all wounds. Even dinged credit.

  2. bubblesitter


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    2   9:05am Thu 6 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (1)  

    Generally speaking dual agent only helps the buyer and screws the seller - always. Current RE market in USA is completely rigged with corruption. Realtors + govt incentives have helped fuel this behavior, just like EZ loans fueled the bubble in first place. Good luck to you.

  3. TechGromit


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    3   9:45am Thu 6 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (1)  

    My opinion is still the same. Move into the house and live rent free until your evicted. This is the best move you can make. Save the "rent" you would have been paying. In New York a lender must choose between the actions of foreclosing on the property or suing to collect the debt, they can't do both. So if they foreclose they can't sue you later to collect anything from you. I would forget about pursuing a short sale. Your credit is destroyed anyway, weather you have a foreclosure on record or a short sale the results are the same. Actually a short sale works out better for the bank. If they don't have to foreclose on your property, this leaves them free to pursue you later to court to collect the rest of the debt.

    What you need to understand is a short sale doesn't always mean the bank forgives the debt. They are giving the approval to sell the asset that is being used to as collateral for the mortgage for less then the outstanding debt. If debt isn't forgiven as part of the short sale, they could still file a lawsuit against you to collect the difference, think 20 years of garnished wages.

    Move in, live rent free, this is the best move you can make. Even after the house foreclosed on, and sold at auction you can still live them until the sheriff comes to evict you. The process to evict a tenant (you even though you pay no rent) is completely separate then the foreclosure. You could easily live there another 4 to 6 weeks, or get a cash incentive by the new owner to leave sooner.

    Besides I'm sure the short sale will be greatly complicated by the fact there are two people on the deed. Can't exactly transfer a deed without the other person there to sign off on the deal now can you.

  4. lulu1981


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    4   7:25am Fri 25 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    This post is completely incorrect, erroneous …….What are you talking about the dual agency is only good for the buyer?
    This doesn’t even make one bit of sense? Dual Agent only helps the buyer and screws the seller? What? HUH? Why? How? That is such a odd generalization that is not true & makes no logical sense. Dual Agent means a realtor is handling both sides. A good RE agent is only using dual agency if they are 110% sure their buyer is the absolute best buyer for the property…….so if that is the case? Bringing a well qualified buyer for the property can add value to both buyer and seller. In Dual agency the buyer is expected to pay market value or be the best of the offers sent. The seller would be getting a fair market value or whatever the best offer is for the property. The seller would net the same amount of money & the buyer would pay the same amount of money……so having dual agency has zero to do with either party having any different experience than if they both had their own agents. One of the luxuries for the seller of knowing their agent who they hired to list the house is also overseeing the buyers side so if something goes wrong or problems come up the seller will get the honest truth & not some delayed attempt to hold on to the deal like many buyer agents will do. The listing agent knows if the buyer they bring does not perform they still have the opportunity to sell the property so standing in the way of the best result for the buyer would be pointless. Dual agency is not common for ethical agents because the likelihood that the listing agent has the perfect/ideal client for their own listing is rare. The MLS is the single most effective marketing tool and best way for a seller to ensure they are getting the very best price for their home. Any good agent lists the home on the MLS & thinks about their seller first before any possibility of double ending or dual agency. If you have any other opinions about his matter I’d be happy to debate.

    . bubblesitter says

    Generally speaking dual agent only helps the buyer and screws the seller - always. Current RE market in USA is completely rigged with corruption. Realtors + govt incentives have helped fuel this behavior, just like EZ loans fueled the bubble in first place. Good luck to you.

  5. PockyClipsNow


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    5   1:13pm Fri 25 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    How much rent are you collecting on the house? If you tell me its been vacant 4 years thats a lotta money u flushed.

  6. gbenson


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    6   3:24pm Fri 25 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Forgive my pessimism kibble, but I think you are seeing corruption where there isn't any. If you are getting multiple offers and all of them are lowballs, then one of two things is happening:
    1. your market just doesn't support your asking price (your agent should have had a BPO done by now, what did that show?)
    2. Investors don't want your property for some reason, at least not for the asking price.

    If your place was attractively priced, you'd be seeing other offers coming in from other agents for near list price. The fact that you aren't means nobody wants that place at the current asking price.

    Rent it until the clock runs out...

  7. Greenhead3


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    7   10:02am Sat 26 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike  

    "Knowing the corruption that went on with obtaining my loan I don't feel bad for the banks"

    Really? Did they forge your signatures on the loan docs?

    Personal responsibility has gone out the window, especially here in California. Sure the banks were got greedy but so did you, its tiresome to hear people play the role of victim and act like its all the banks fault.

  8. Patrick


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    8   10:11am Sat 26 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike   Protected  

    Greenhead3 says

    Really? Did they forge your signatures on the loan docs?

    Personal responsibility has gone out the window, especially here in California. Sure the banks were got greedy but so did you, its tiresome to hear people play the role of victim and act like its all the banks fault.

    I felt that way too until I myself got dinged by the fine print on several contracts with floridly verbose fine print.

    It's just not practical for people to actually read all of the loan documents. That's one reason the banks have greater responsibility than the borrower: they wrote those documents.

    Another reason is that the banks make loans all day long, but borrowers get just a few mortgages in their whole lifetime, maybe none.

    Verbose boilerplate should be illegal. The whole contract should fit on a single 8 1/2 x 11 sheet of paper in normal font and plain English understandable by an 8th grader.

    My book contract with O'Reilly was like that, and I still admire them for making it so short and clear, even if it was not the best of deals.

  9. Patrick


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    9   10:13am Sat 26 Jan 2013   Share   Quote   Permalink   Like   Dislike   Protected  

    This book got good reviews and I plan to read it:

    http://www.amazon.com/Boilerplate-Fine-Print-Vanishing-Rights/dp/069115533X/ref=sr_1_1?tag=patricknet-20&s=books&ie=UTF8&qid=1359223701&sr=1-1

    Boilerplate: The Fine Print, Vanishing Rights, and the Rule of Law

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