RE lawyer instead of RE agent for short sale

[Rob L]

The short sale situation is difficult because the title owner is selling to the new buyer, so the contract is between the new buyer and the old buyer. But the old buyer is not "the real party in interest", the bank is, because the bank owns what ever value is left in the house. Banks therefore have all the rights (to turn down the sale) but none of the responcibility. (They don't really have to do anything if they attract no sale.) So, the real estate agent can't put a clause in the contract with the new buyer. The new buyer is not the one holding the loan. The real estate agent has every incentive to get the bank to approve the sale. Normally, they would not care about the deficency. You might be able to get the real estate agent to push a "no recourse" provision on the bank while trying to get an approval. But the bank, and the seller, don't really have all that much leverage with the bank. If the bank is a mainland bank, it probably does not even want to take the time to talk to the seller and her agent.

Aloha,
Rob L