I’ve been noticing this and here’s the situation; unless the lender “killed” the sale by potentially cashing out more on the foreclosure if the borrower had PMI (Private Mortgage Insurance) which gave the lender(s) more than what they would make with a short sale, a good amount of current foreclosures were previously listed, and at sometimes RIDUCULOUS prices, as either short sales or just badly overpriced listings.
Which means there is a responsibility that real estate agents who are Realtors® have to follow, and THAT is;
according to the 2009 Realtors ® Code of Ethics;
Standard of Practice 1-3
Realtors®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.
To go to someone’s house and list a property at an overpriced number because “the owner told me” is like allowing “Dr. Kevorkian” to prescribe medication because the patient simply has a bad day…
So, why does this sort of thing happen?
I suspect it has to do with one of the following…
1. The agent doesn’t know how to do a short sale and figures, “well, this is a hopeless case, anyway, so I’ll just list it and if the miracle of 2009 happens, great! If not, I don’t care anyway, or, at least I tried”…
2. The agent REALLY doesn’t know what they’re doing …
3. The Seller gets TOO selfish and says “Hey, if I don’t get anything outta this, let’em take the house.”…
What about the credit rating?
Honest to God, if a seller can sell at a Short Sale, and doesn’t, that is probably one of the dumbest things they do!
You don’t have to be behind in payments to do a short sale! You only have to prove “Hardship!”…
So many people get so much bad advice; so much confusion… It’s ridiculous!
Yes, short sales are tough! Yes, short sales are a pain! Yes, Yes Yes!
BUT..
If it’s the only way, it’s the only way…
I have done a good number of short sales. The process is pretty much the same. The work is brutal. BUT.. The reward is good, and believe me, I’m NOT talking financially speaking. I’m talking the knowledge I helped someone… A negotiated settlement is always better than a court judgment in most cases. At least you know what to expect.
