East Valley Team member Dean Ouellette talks about how a bad counter offer from a bank asking for way to much money is not always the banks fault.
Another day, another short sale horror story for short sale agents to be aware of. This one involves a lawsuit in California which has implications for every agent in the country doing a short sale.
The details of the lawsuit are not what is important in this case. What the agent did we would never do and he deserved to be sued. The real problem is the agent opened a door for an overzeoulous judge to drive a mac truck right through. That is exactly what he did, he changed the rules forever for short sale agents
Based on the dicission short sale agents now have an obligation to not only the seller, but to the buyer too. We need to let the buyer know of any reason a deal may not close like private mortgage insurance, deficiency exposure, unpaid HOA liens, sellers inability to make cash contributions and/or sellers relative financial health.
Sound crazy? It is, but hundreds of lawsuits have been filed in just the last couple of weeks based on this new ruling. Short sale agents you need to disclose more than ever or risk being sued. Unfortunately this could impact our seller who we are all used to having a fuduciary responsibility to help.
Who says you can't teach a rocket scientist new tricks. Since Kristin left her former profession for her new one she has built one of the fastest growing businesses in the East Valley. Kristin is known for her Youtube videos, make sure you check them out. 
After a long career in political consulting Dean transitioned to real estate and has not looked back. Dean is one of the sick ones who enjoys fighting with banks to get short sales approved and to help homeowners avoid foreclosure. Dean also loves making videos on the subject.
This appears to be a disclosure issue. When I read the lawsuit information (I am not a lawyer or proclaim to be one) it appears the listing agent did not at any time in the transaction notify the buyer the property was a short sale.
To me that is quite a different issue than saying an agent who has disclosed their listing is a short sale has to then provide confidential information regarding a client’s overall financial status. We have no way to know upfront whether the seller may have to make a cash contribution as a requirement to close a transaction.
I’m not as quick to jump on this ruling in CA as a reason to yell FIRE across the country for every agent who is listing a disclosed short sale.