Are Short Sale Lenders Interfering With Your Listing Agreement?
Are Short Sale Lenders Interfering With Your Listing Agreement?Are short sale lenders interfering with your listing agreement?When you list a short sale you and your seller have a legallybinding listing agreement known as a contract. This is a bi-lateralcontract between you and the seller. There are no other parties signingthis contract except you and the seller.So when the lender calls your sellers to tell them that there is too muchpaperwork involved in a short sale and why dont they just cancel theirlisting and do a deed in lieu- do you consider that a tort interference
of a contract? Tort interference is when one party "convinces anotherparty to breach the contract". You must be able to prove you have acontract- the listing agreement in this case.The seller is not the banks client. They are a customer of the bank.The seller is a client of the agent in a short sale transaction most of thetime. The banks client is the investor who owns the note of which thebank is servicing. So the banks client- the investor- is who the bankhas a fiduciary duty to- not the homeowner.I would love to hear some attorneys chime in on this one.When the first lender did this to one of our sellers we wrote it up forignorance but now this seems to be a new trend by the lenders.Actually in the last 3 weeks different lenders have called 4 differentsellers to cancel their short sales and do deed in lieu.Disclaimer: We are not attorneys and we are not giving you legaladvice.