Short sale agents beware of new lawsuit

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.

Here is a link to more on the lawsuit.