Short Sale Nightmare

[Chris Colvard]

My friends daughter came to me with the following story asking for help.

Seller is approved for Citi short sale. Listing agent finds buyer who submits offer.

Buyer wants to lease prior to completion of approval by bank. Listing agent recommends this and tells seller to move out. Listing agent does lease agreement, takes deposits, rent and option fee, even though lease agreement has no provision for option.

Realtor holds checks for 15 days. During which time, buyer/renter begins unauthorized rehab. Puts utilities in their name, etc.. But, never occupies the property.

Buyer decides to exit the deal ten days later. But, buyer has caused $1,500.00 of unfinished rehab, cut of water so all landscape is dead, pool has now turned green.

Total damages over $10K.

Realtor who had the checks totalling over $2,500.00 never put them in escrow. Buyer stopped payment on all of them. No money for seller!

Seller receives letter from Citi stating that if they have vacated, they may not qualify for short sale.

What are your comments?

How can I help this person?

What recourse does this seller have?

Never heard of anything like this!

[Joel Owens]

I am not in this transaction but sounds like gross negligence on the part of the agent giving advice which had adverse consequences.

Time to call the main brokerage who has the listing and tell the qualifying broker the seller will sue if the broker doesn't immediately pay damages.

Short sale or no short sale the damage is almost the same anyways.Could just do a DIL if no other liens are present to the bank.

No legal advice.