Matt Keough, New Castle County, DE, Matt Keough Agent New Castle County Delaware (Patterson-Schwartz Real Estate)

Spam prevention
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I would definitely escalate that file to executive resolution team and ask for a new negotiator! Look at all the arm's length stuff we have to execute for short sales. That negotiator should already have removed themself. It would be really bad if the seller lost the home to foreclosure.

Jan 27, 2016 05:08 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

I'm not a short sale expert but isn't there something about an arm's length distance in a transaction?   

What was your feedback?

Jan 27, 2016 04:37 PM
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

It sounds like a problem to me.  What Candice said.

Jan 27, 2016 05:14 AM
Sharon Altier
Coldwell Banker Realty - Elmhurst, IL
Luxury Property Specialist, CSC, SFR

Depending upon how it has been handled.  It is not a wise idea for the negotiator, so one would hope all documents are in place for the rental and handled as they would would any other person who would be renting.  Of course, proper notice for departure from home upon closing, etc....too few details to make a clear determination.  A lawyer can best address their particuars. 

Jan 27, 2016 04:57 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Sounds like a potential conflict of interest to me. But I'd get a true legal opnion on this. And Michael Jacobs has raised an important point about the arms length transaction aspect. Candice A. Donofrio has also provided a good starting point to move the process along.

Jan 27, 2016 09:04 PM
Roy Kelley
Retired - Gaithersburg, MD

I like the answer provided by Candice A. Donofrio

Jan 27, 2016 08:43 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Matt Keough, New Castle County, DE looks like conflict of interest to me - however, not an attorney - ask your friend to check with an attorney for the options.

Jan 27, 2016 02:24 PM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Here we have really, really onerous landlord tenant laws that make it hard to evict any "occupant" without giving the "occupant" the right of first refusal.  And this could hold up a transaction for a couple of years.  So here, it would be serious malpractice.

Jan 27, 2016 02:18 PM
Karen Butler
RE/MAX Coastal Properties - Fort Walton Beach, FL
Eglin AFB/ Fort Walton Beach /Destin Relocation

Sounds like that would NOT be an Arms length transaction.  Too much opportunity for collusion on the Negotiators part.  Just like a judge, they should recuse themselves from this particular case.

Jan 27, 2016 01:58 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I think they would have to be a conflict

Jan 27, 2016 12:45 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

It smells of impropriety and I would certainly want to talk with a supervisor about this and have the case reassigned.

Jan 27, 2016 11:36 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Yes, it sure sounds like it is.

Jan 27, 2016 11:27 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I never like to throw another agent under the bus, but this might be the one to call Greyhound for. 

Jan 27, 2016 09:48 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Yes!  That sounds like the negotiator is working in the interest of their family.  Fire them and negotiate yourself (whoever the agent is.)

Jan 27, 2016 09:40 AM
Linda S. Cefalu, Broker Assoc.
Coldwell Banker Homesale Realty - Hales Corners, WI
I'll Take You Home

If the agent is aware, he or she may be in violation as well.  I would strongly suggest he/she consults with an attorney asap.  

Jan 27, 2016 09:08 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I would think that this is yes, but checking with the Dept. of Justice or who could give the right answer to would be necessary. I would also check with the lender on how they view this so you or the agent are not a party to this.

Jan 27, 2016 07:41 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

That definitely sounds like a conflict of interest, and one would wonder what the bank might think. I like Candice's comment as well

Jan 27, 2016 07:29 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I say yes. Hard to move along the property quickly & get a relative thrown out of it right?

Jan 27, 2016 06:59 AM
Cheri Long
Metro Brokers/Priority Properties, Inc. - Centennial, CO
Metro Denver Realtor- Your Home is my PRIORITY

There are probably bigger issues than that if the "renter" is paying rent and the owner or negotiator is pocketing it.  Makes me wonder if the banker knows there is a renter in the house!  HELLLLO ATTORNEY

Jan 27, 2016 06:53 AM
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Refer the person who is asking the question to real estate attorney.  The he said she said along with missing details makes any scenario hard to sort out.  As agents we do not give legal advice or opinions.  Get out of middle even though you want to help

Jan 27, 2016 05:37 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

With a short sale you never know where the blame may be however this doesn't smell right to me!

Jan 27, 2016 05:35 AM
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Who is collecting the rent money?

The seller is still the (only) owner,so sure, they can rent out the property and collect rent.

If the negotiator is the one getting the rent money, for sure that is a conflict of interest.  If that is true, the negotiator  would have no incentive to work on the short sale.


Jan 27, 2016 05:24 AM
Jill Moog
Coast & Country Homes and Estates, Inc. - Carlsbad, CA
Carlsbad, CA Homes for Sale

It sure sounds like a conflict of interest to me. I would ask for a new negotiator.

Jan 27, 2016 05:16 AM
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

When in doubt, disclose. Also, it might be a conflict if the relative plans to stay on after it sells.

Jan 27, 2016 05:09 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Sounds like a conflict to me, I would suggest going up to a higher authority who can replace the negotiator.

Jan 28, 2016 11:35 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Ask for a different negotiator.

Jan 28, 2016 01:38 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Yeah, We never really know what’s going on in situations. On the surface it would appear that would be a conflict of interest.

Jan 28, 2016 12:45 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Does this negotiator work for the lender, or the Short Sale Seller?

Jan 27, 2016 09:50 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

At frst glance, there is a conflict of interest!

Jan 27, 2016 09:49 PM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Candice A. Donofrio has this one.

Jan 27, 2016 09:44 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

DEFINATELY, during a short sale a professional negotiator should be used and not one that has a relative in the property. These days we can get anwers in as little as 30-45 days on our short sales, there is no longer a 6 month wait when done correctly

Jan 27, 2016 09:23 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Matt Keough, New Castle County, DE  Wow, this is interesting question.

Jan 27, 2016 07:57 AM
Matt Keough, New Castle County, DE
Patterson-Schwartz Real Estate - Wilmington, DE
Matt Keough Agent New Castle County Delaware

Thanks for your feedback.

A great deal changed in the past 24 hours. 


Thanks again.  This is a great resource for situations like this!

Jan 27, 2016 04:52 AM