Home Buying in Queens>Question Details

jddrake, Home Buyer in Oklahoma City, OK

Is this an unethical real estate transaction?

Asked by jddrake, Oklahoma City, OK Mon Jan 14, 2013

I made a offer on two rental properties. The realtor called two days later and said the seller accepted my offers, but said there was a problem, they owed more on the mortgages than the offer. They want to go to bank and see if they will forgive the 14,000. One offer was for the full listing price. The other offer was about 3500 less than listed price. I dont know if the realtor was aware of this or not. Seems shady to me, how could the seller not know what they owed on the properties.

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Answers

9
The seller counter offered your offer when they (the seller) placed the contingency of the lender accepting the offer. It is too bad they were not up front with you when you were looking for houses, but this is just a counter offer, you do not have to accept their terms.


Best of Luck,

Josh Barnett, Realtor
Metro First Realty
Web Reference: http://www.GetSoldOKC.com
0 votes Thank Flag Link Tue Jan 15, 2013
It appears that the seller doing a short sale ,it is possible that the agent was not initially made aware of the short sale ,Often banks overide the contract price agreed between the buyer and seller.consult with your attorney
0 votes Thank Flag Link Tue Jan 15, 2013
It appears that the seller needs to short sell; it is possible that the agent was not initially made aware of the shortfall; also possible that the property may have other liens; for any necessary legal information consult with your attorney.
0 votes Thank Flag Link Tue Jan 15, 2013
Does the seller have a legit hardship to qualify for forgiveness on the shortage amount? Often banks overide the contract price agreed between the buyer and seller. Many sellers fake a hardship and hope to get a zero deficiency release from the shortage. Stick with already foreclosed REO's and short sales that are promoted as bank approved at asking price.
0 votes Thank Flag Link Tue Jan 15, 2013
ANY home for sale can be 'forced' into a short sale situation if the offered price is below the amount owed and the owner does not have the balance in cash.

Will you be able to purchase both homes if the seller agrees to your offered price?

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEz.us
0 votes Thank Flag Link Tue Jan 15, 2013
The answer is that it is NOT unethical. It's simply a short sale. Should it have been disclosed in the original listing? Probably but sometimes things change, it's possible that interest and penalties accrued to the point of making this a short sale without the owner realizing it. It's possible the owner thought they had enough money to make up the difference so they wouldn't have to do a short sale. Whatever the reason the answer remains the same, no, it is not unethical.
0 votes Thank Flag Link Tue Jan 15, 2013
More likely, there were additional liens and/or judgments which either the seller had forgotten about or was unaware of (yes, possible) , or possibly he was too embarrassed to mention them. Since monthly payments are not made on these things, it is easy to put them out of your mind. I've seen this happen before.
0 votes Thank Flag Link Tue Jan 15, 2013
It's also possible that the agent ASSUMED the seller knew what s/he owed and would have identified the fact that the list price was in short sale territory. Back in the day, when short sales were practically unheard of, there was this thing that was not uncommon...it was called "taking a loss", and people did it when they owed more on their property than it was worth. These days people jump immediately to short sale. Sometimes, especially with investment properties, people just need to get out from under a property (for various reasons) and taking a loss is the only way to do it. So, it may not have been unreasonable for the agent to be unaware that the seller owed more than the list price. Best of luck with your transaction...
0 votes Thank Flag Link Tue Jan 15, 2013
Maybe the listing agent is just inexperienced or neglected to ask about existing mortgages when taking the listing.
0 votes Thank Flag Link Tue Jan 15, 2013
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