Here's the dilemma.
Sally Jo has a short sale listing. It's a marketable property, except for the fact that it has a first and a second mortgage and is around $50,000 upside down. Oh, and one of the lenders is Bank of America, who, rumor has it, is among the worst banks to work with on short sales.
Sally Jo has watched two perfectly good contracts come and go, with a third on the horizon. The first contract was double-ended on her part - that is - it was written by a buyer who came to her off her advertising of the property. This buyer fired her after three months of fruitlessly trying to get anything from Bank of America only to finally receive a denial (with no explanation). The buyer, understandably, felt that Sally Jo had strung her along, and looked elsewhere for real estate assistance.
The second buyer walked away after waiting six weeks for any semblance of a response from Bank of America. Their buyer agent lost them, too, out of frustration with the process.
Buyer #3 also came in off Sally Jo's advertising and is ready to make an offer on the listing. In the meantime, Bank of America has again closed the file and estimates a 15-20 business day turnaround to review a new offer, then another 15 - 20 business days to assign a negotiator. Assuming that they don't lose the file or need "updated financials" from the seller.
So, do you see Sally Jo's dilemma?
She has a ready, willing and able buyer, worth around $6,000 to her if he purchases something. Worth zero to her if he doesn't. Is she obligated to encourage him to write on her seller client's property, knowing almost for sure that the deal won't ever close?
FYI, this situation is happening in a dual-agency state, which I don't have much experience with, so I'm not sure how that factors in.
Would love your thoughts! I really don't know the answer.
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