So, you took a listing on a potential short sale, and the seller’s lender is acting as if they are in control. Are they?
Well, to some extent, yes. While your seller still owns the house, will sign any contract, deed and closing papers, their lender will say yes or no to the deal. Since we are asking the lender to accept less than they are owed, they can say no to deal, thus stopping the sale. Thus, they often act as if they are in control, since they do control that part of the deal.
Your seller will have some control once/if the lender approves the short sale. The lender might require something from the seller that the seller cannot or will not comply with. At that point, the seller could say no and cancel the deal.
In essence, the seller’s goal should be to sell the house. To do so, they must get their lenders approval. That might mean giving up some control, and if so, if that accomplishes the task at hand, then so be it. Control is important, but not everything.
Always keep in mind; as the listing agent, your client is the seller, not their lender. You should follow any instructions from your seller, yet might be reluctant to follow any from the lender. If the lender puts any obligations on you, be sure to discuss that with the seller before proceeding.
