Short Sale Sucks
Five weeks ago we put in a contract for short sale property with a price above what the seller was asking for. We’re the highest offer and the only remaining buyer of the house. Both the seller and the banks have approved the price, but the short sale agent refuses to close the deal with us. She is negotiating with the second lender to lower its net so she could get more commission.
From what I understand, the owner goes into short sale to avoid foreclosure because he cannot make the payments. The banks don’t want to go into foreclosure either because it would cost them more money. In this case, it is the seller agent who is dragging on the contract because she is not getting enough commission. If she keeps dragging this out, the house will eventually fall into foreclosing.
So the increasing number of foreclosures isn’t necessary the owner’s fault, but the greedy agents. Has anyone have any experience with short sale? Is the seller agent allowed to do that even though both the banks and the seller accepted the price? Is there any regulation?