When the listing agent acts as the selling agent the same time, it it a good opportunity for him/her to rip off the buyer using different excuses.
It is true that the first bank wants all of the sale price, but the second bank refuses to release the deed if it does not get anything. In most cases, the second bank would agree for $1000. Because if the short sale fails and the house goes into foreclosure, the second bank does not get anything. But sometimes, the second bank wants more than that. Sometimes, the agent tries to hide the fund to be provided to the second bank from the first bank by not disclose it from the HUD1. But, in most cases, the listing agent just uses this as an excuse to take money for him/herself.
See the following two cases:
First case:
我Offer了一个short sale。本来的价格是58万，后来agent说第一个lender aproved and would give 2nd lender 3000. But the 2nd lender asked for another 34500. I told her no way, the most I can pay is $10k more, then the agent at first said she would sell it to another buyer; later she said the the first lender would give 2nd lender $20k so we pay $10k. I accepted, then because my loan of 570000 has been approved, our agent asked me to keep the same amount 570K on escrow document, but add a 10K addendum saying that we would "add 10K when escrow closes".Do you think the agent might be trying to get more money she is not supposed to get? and is there anyway we can avoid paying the extra 10K? Escrow will close next week. Please let me know, thank you very much.
I am pretty sure the listing agent lied. Why does the first bank care about the second bank? Why does the buyer need to pay additional money after the escrow closes? Where will this fund go?
The second bank wants $30K? yes of course it wants as much as possible. But will you give it? No way. Every agent knows. Why the agent insists to give the second bank this much? Why doesn't he release the approval letter of the second bank?Simple, he wants the money!
You can prevent this by one of the following ways- 1. Use your own buyer's agent, not the listing agent. 2. Use your own title company and pay everything to the title company, not anyone else. 3. Insist the agent to release all the approval letters. 4. Insist everything to be disclosed in the HUD1 5. If you agree to pay additional than the fund to the first bank, be sure the fund is paid to the second bank, in written. Not just "agree to pay additional ...". Who is getting the additional?
