It’s a Short Sale People. STOP TREATING IT LIKE AN REO!!! New Hampshire Massachusetts Short Sale.
A short sale typically happens when a homeowner who’s behind on the mortgage tries to sell for less than they owe. REO stands for “real estate owned.” The home went into foreclosure but didn’t sell at auction, so the lender repossessed it. I’m going to clarify the difference for you once and for all so you know the exact difference between these two.
So, It’s been a crazy week for us. We had three closings, a lot of scrambling, driving, and then two listings came in today that we assigned out to the Realtors we work with. (Side note: Congrats Cheryl Dwyer on Cohasset!)
On occasion, we have a homeowner call us that lives in an area that we don’t have an agent close by that we’ve worked with. We LIKE to give our listings out to agents we’ve worked with, who know how to work with us, know how we work our short sale negotiations and can close property smoothly, but the listing came in and it was in an area in New Hampshire that was fairly remote, so I had to reach out to one of our Realtor networking boards to have someone list it.
I got a call from an agent who I’ve spoken with on multiple occasions, but we just didn’t seem to be able to work together for whatever reason, but he was interested in this listing so we assigned it to him.
He immediately got going on the legwork which was great.
He called me tonight and asked a funny question. Are you submitting multiple offers to the bank if I get them in? I explained I can’t submit multiple offers. Only one executed offer goes to the lender and all the rest are put into a backup position. He said, “Yes, that’s what I thought, but I was working on a short sale earlier this year and submitted an offer and two weeks later had an agent demand her offer be submitted to the bank.”
Now, I’ve had that happen myself. We had a property in Newbury, MA we negotiated and 3 offers came in. The homeowner selected the strongest offer and went forward. One of the agents (A CDPE nonetheless) demanded his offer be accepted and when we said no, he said he would submit it directly to the lender. I laughed so hard I almost fell off my chair. AND THIS GUY WAS A CDPE?? For those who don’t know, you CAN’T submit your offer directly to the lender in a short sale. Your contract is with the SELLER, not the lender.
Anyways, back to the story. I explained to the new Realtor I was working with he shouldn’t have been worried if the property was already under contract. I guess he had more to worry about that I thought when the pushy buyer showed up at his seller’s doorstep with a P&S in hand and said, “Did you see this?” Can you IMAGINE? Next thing you know he was reported to the NH Real Estate Commission. I thought, “What for?”
Here is where the story gets VERY interesting. He explained to someone at the commission that he already had it under contract so legally he couldn’t submit the other offer and do you know what the woman said? “Why didn’t you submit the other offer to the bank?” Someone at the New Hampshire Real Estate Commission said that!!!!
Ummm….let’s see. Because an agent must follow the law and you CAN’T have two executed contracts on the same short sale. IT’S NOT AN REO where multiple offers are submitted to the lender!! People confuse the two. Your contract is with the SELLER of the property, NOT the bank. I cannot believe someone at the commission said that to him. Everyone get online RIGHT NOW and lookup tortious interference. Any real estate agent should be VERY nervous about submitting two executed contracts at once. You could get sued very quickly, buy the buyer, seller, and “other buyer” – It is NOT an REO it is a short sale and the seller is NOT THE LENDER. The seller owns the home.
For Realtors, Attorneys, Title companies, etc interested in our services please go to http://massachusettslossmitigation.com/
For homeowners needing assistance with avoiding foreclosure please go to http://shortsalemitigation.net/
2500 Main Street,
Tewksbury, MA 01876