WEARING TWO HATS IN A SHORT SALE SITUATION

In addition to a very active real estate practice I also serve on the board for our HOA here in Leander, Texas. 75% of the business I do is short sales. This week our HOA received a letter from an agent with a listing in my subdivsion. She was requesting that the association waive over $2,000 in back dues so that her FHA short sale could close. She claimed that she did not know "that the seller owed so much money and why didn't we do something about it." Simply stated, her requuest was a waive this before July 16, or the seller will be foreclosed on the 17th and that getting something was better than getting nothing.

Our conversation did not go well. I told her that we had tried to collect but that the homeowner had not paid since 2006. I asked her if she had resubmitted her approved short sale with the HOA dues on her HUD-1? (She had not, nor did she intend to do so.) I also advised her that HUD would pay up to $1,500 to satisfy junior lienns and that her seller was probably getting either $750 - $1,000 from HUD to cooperate in a short sale. I told her that we would be more than happy to waive anything over $2,250 so that her sale could close but she needed to look elsewhere to solve her problem. The bill for this home was over $3,000 including legal fees.

Today I looked to see what happened to that listing, and I see that it has been removed from the market by the agent. It is no longer listed as pending but has been withdrawn. I am appalled at this agent. Why? First of all, anyone who takes a short sale listing should know theforeclosure process in the state of Texas. Foreclosures happen here on the first Tuesday of the month and not on the 17th. Second, if you are going to take a short sale listing, know what the process invlolves and if you don't get it, get out of the way. Learning to handle a short sale should not be done at the expense of the cllient. Third, what happened to her fiduciary responsibility? She was supposed to put her client's interest ahead of her own. I could go on all day about this encounter.

What do you alll think of this one?