Are you going to get run over or are you smart enough to be standing on the side of the tracks. For all the real estate agents that are doing Metro Detroit short sales and not getting a release of liability for the deficiency for their sellers they may be in trouble in the future. I am amazed at how many Metro Detroit real estate agents that are not doing this.
Banks like Bank of America is not giving those deficiency release letters out. It’s their policy not to give them out. So that means sellers can be on the hook for the difference between sales price and the amount they owe. If your client gets a bill from their old bank for $40,000, $50,000 or $100,000 who do you think they are going to come after. THE REAL ESTATE AGENT OF COURSE.
I think they are going to go after the Metro Detroit real estate agent that didn’t look out for their best interests. An agent that didn’t do their job. An agent that didn’t cover all the bases for their client.
If you are gambling that the bank won’t come after your client because of the past history you may have a big lawsuit coming your way in the future. I think the amount of money you make on 5 Metro Detroit short sales may not cover the cost of one judgment and legal fees.
So if you:
- can’t get a release of liability from the mortgage holder for your client
- you don’t you advise your client of the potential liability
- you don’t have your client sign off that they are aware they could be deficiency judgment against them
YOU AREN’T DOING YOUR JOB AS A METRO DETROIT REALTOR OR A SELLERS AGENT. IT’S YOUR JOB TO LOOK OUT FOR YOUR CLIENTS BEST INTERESTS NOT YOUR POCKET BOOK.
The litigation train may be coming will you be run over by it. That just my thoughts. I honest don’t know why sellers do short sales anyway in some cases. Their credit isn’t saved if the seller has been late on payment more than 3 months. A foreclosure and a short sale both are bad on your credit report. So why take a chance of owing a bank long after you do a short sale.
Russ Ravary your Northville real estate agent serving Wayne, Oakland, Livingston Counties and a little more.