Short Sale Buyer's Agents - Don't Shoot the Messenger

Today did not turn out to be a pleasant experience. One of my short sale contracts came apart. That in itself is not unusual, but the buyer's agents reaction to what happened was over the top. I received a Form 90045 on this listing which means that we now know what the bank must net on an offer. Therefore the short sale is pre-approved if it complies with the conditions stated on the form. The offer on the table did not generate the required net on this property. I explained that to the buyer's agent and he came unglued. Tonight he threatened me with filing a complaint with TREC and with a lawsuit if the bank didn't close. He also expects me to reimburse his client for his inspection costs and for his appraisal.

In Texas we have a Short Sale Addendum which clearly states that the contract terminates and the earnest money will be refunded to buyer if Lienholder refuses or withdraws its Consent and Agreement prior to closing and funding. Mr Buyer, the lender rejected your offer.

This buyer has a few choices to make. He can walk away from the transaction and get his earnest money returned. He can pay the difference to allow the bank to net the required amount.

Buyer's agents, if you are going to represent someone on a short sale transaction, make sure you explain the pitfalls on a short sale. If you don't know what they are, then read some of the posts here on AR. Educate your buyer. Make sure you explain the short sale addendum. It is there for a reason.

Don't shoot the messenger. I'm just doing my job. Did you do yours?