short sale flipping-I represent buyer

[Diane B.]

I am a new agent in New York and submitted an offer on a short sale on behalf of my client on a listing that was originally listed with an agent. I was then contacted by that agent and was told that she was withdrawing her listing and a "short sale negotiator" was stepping in. This short sale negotiator is an investor who tells me that she is is negotiating with the seller's lender and if accepted, the property will transfer to her and she will then transfer it to my client. I asked her if the bank was aware of the amount of my client's offer and her reply was "the bank is aware that she is an investor and her contract clearly states that she has control over the property and will sell the property for a profit" and that my client's offer is to her - not the lender - and my commission will be paid by her.

Should I be concerned about anything here? I will disclose this to my client and let them make a decision but my broker is not comfortable with me doing the deal. I don't want to walk away if not necessary.

Any suggestions?