I have an urgent question about the sell of my home! Please help!?

Question

Okay, we've sold our home, and have bought another. We had a lien on our home from an old second mortgage, and it's on up there with interest, and penalties... The negotiator for the second mortgage company has jerked us around for a solid month until finally, a week from closing he tells us, they won't take our settlement, and that they want ALL of what's owed them. Well, that leaves us 7k short to get into this home. We've been telling our realtor what's going one, and that we can't do this deal, but she's insisting that, even if she has to come up with the money herself, we need to do this deal. She also represents the lady that bougtht our home as well. She says that if this all falls apart, everyone's deals on their homes, that's envolved, falls apart, and she'll look like a total idiot. Is this ethical, and could she really be stringing us along until our present home closes. I've never heard of an agent giving her own money to make a deal go through. Thanks to all...

I'm worried that she may only be worried about the woman she sold our home to, and leave us out in the cold when the home we live in closes. If what she's proposing is true, then I've never met anyone so kind. What do you all think?

Answer 1

I have heard of realtors waiving thier commission to make a sale go through, but not coming up with her own money.GET SOMETHING IN WRITING and express your concerns to her. The sale of your home won't be able to go through you have the money to pay for this lien.

I would suggest having a back-up plan in the event that her "generosity" does not come through. Can you borrow money from a friend, realative? Do you have any stocks that you could cash out?

Good Luck!

Answer 2

What your Realtor is proposing could be legal and ethical providing all the information is included in the sale.
An addendum has to be drawn stating the Realtor is reducing her commission on your home. In this case should be a minimum of $7,000. She CAN NOT legally give or contribute cash to you for the closing of your home.
By reducing or eliminating her commission on your home, you would have that amount added to your settlement statement.
Reducing the commission on the other home in question does not do anything for you unless that is the home you were buying. In that case she would have to reduce the price of that home by her commission amount, thereby reducing the amount financed.

It is true she is making a double commission, and there is nothing wrong with that since she put both deals together. You should respect her decision to do what has to be done in order to make the deals go.

Not all Realtors are piggy. When you understand that 10% of the Realtors do 90% of the business, it would be safe to assume you are working with one of the better Realtors in the 10% range.

I have helped with closing costs, inspections, repairs, and warranties.
My clients are my future, and if I can't help them make their dream come true by reducing some commission, then I should be selling cars.

If everything you have detailed is accurate, I will stand by my opinion, and wish you well on your new home.

Answer 3

No, it isn't unethical. Your realtor is being EXTREMELY generous by offering to pay for the debt YOU incurred, in order to make you as well as the buyer of your home, happy & meet your needs. You should be grateful that your realtor even offered to help you out in the least with your lien. The realtor will most likely either cut their commission by $7,000 to help you out, or give you the money you need to pay off the lien. If this deal falls apart, the realtor is going to have a mess to deal with, which was caused by YOU, not to mention the fact that she won't get paid, and the buyer of your home may sue you.

Listen to your realtor, that's what you hired her for. If you're not comfortable with accepting teh money from her, tell her ASAP, and go from there.

GOOD LUCK WITH THIS, AND I HOPE IT ALL WORKS OUT FOR THE BEST!!!!!!!!

Also, Doreen's answer above is wrong. It's not unethical for a realtor to represent both parties--it's called Dual Agency.

Answer 4

Probably what she is worried about is getting her paycheck. If she represents you and the buyer of your home she's really biased. She stands to make a lot of money off of you by selling your house and representing you in your deal. Most ethical realtors will not be involved in something like that. DO NOT feel pressured and if you do decide to do what she is suggesting make her signa contract with you that spells out all of the details. If I were you....I'd get a new agent.

Answer 5

First off, you need to speak with the agent and clarify her offer. Is she reducing her commission or is she wanting to take back a promissory note?

I am in a similar situation except that I am the second mortgage holder. The borrower sold the property without my knowledge but to do so was required by the new owner's lender to put the money he owed me in the registry of our local court before proceeding with the act of sale. Your jurisdiction may not allow that to happen but I would think it is possible.

In the meantime, I am having to spend money to collect what was originally owed but it was better than having the guy go bankrupt on me and I wouldn't have gotten anything.

Answer 6

Sounds fishy to me. I'd make sure she put her money where her mouth is BEFORE the sale of the home you're in now closes. You don't want to get screwed and wind up homeless. Sounds to me like you need to put the brakes on everything and resolve your lien issue FIRST. Good Luck!

Answer 7

Here is a website with property selling resources that are free: