Comments on: Agent Gets Sued by Buyer After Home Loses Value

By: Mack in Atlanta

Mack in Atlanta — Wed, 16 Apr 2008 17:04:28 +0000

I just read an article that said the agent was found “Not Guilty”. http://www.nctimes.com/articles/2008/04/11/business/589b9e7009198e1c88257427006b6fd3.txt

By: The Loan Arranger

The Loan Arranger — Fri, 21 Mar 2008 23:17:24 +0000

I don’t think realtors should be loan officers and I believe holdheartedly that loan officers tend to make poor realtors. Micheal Douglass’ character in “WallStreet” said, Greed is good. But at what cost? Walmart’s greed destroys entire neighborhoods before, during, and after their tenure in their choosen “hood”. But we all shop there. Yesterday, I went to the movies, and their were over 20 movies playing in one theater, all operated by teenagers, what are we teaching them?. The manager, whom appeared older, stated he was in college working on a business management degree. My point is this, this destruction of sorts, is not sneaking up on us. It’s right out front….yet we do nothing and bitch when things don’t go our way. The buyer here knew their loan and the purchase of the property was being handled by the same person. Short of full disclosure, the buyer still pursued the transaction. Would the buyer’s reaction have been the same if the property soared in value but not to their expectation…..Both the buyer and the agent/lender got greedy….They both violated the Gambler’s Creed…You got to know when to hold’em, know when to fold’em but most importantly, you got to know when to walk away and know when to run. I think the agent/lender should be force to give his commission to gambler’s annombus and buyer should be giving the Kenney Roger’s “Gambler’s Creed” DVD.

By: Mack in Atlanta

Mack in Atlanta — Thu, 24 Jan 2008 11:52:52 +0000

Bob, I didn’t see in the article that she had requested a copy of the appraisal but was denied. I agree with you that she should have been given a copy of the appraisal when she requested it.

As a REALTOR and a Loan Officer I make it a practice to get a copy of the appraisal to my clients as soon as it completed. We then review it to make certain there are no questions.

By withholding information from the buyer the agent in question deserves to be spanked.

By: Bob in San Diego

Bob in San Diego — Thu, 24 Jan 2008 02:36:31 +0000

Mack, if the agent/lender had given her the appraisal when she asked for it, she would have seen two comps 5% and 10% less and backed out. She had a right to the information and was denied.

By: Mack in Atlanta

Mack in Atlanta — Wed, 23 Jan 2008 20:58:57 +0000

Rather than entering suit against the agent, she should probably be entering suit against the appraiser. Of course the agent and brokerage will have deeper pockets than the appraiser.

This now opens the even larger question of how many consumers are going to be entering suits against Zillow for the inaccurate information they provide on a daily basis?

By: How Licensees Can Get Themselves into Trouble

How Licensees Can Get Themselves into Trouble — Wed, 23 Jan 2008 06:39:31 +0000

[...] Ghimire’s post, Agent Gets Sued By Buyer After Home Loses Value, demonstrates how a licensee can get into trouble while obeying all the laws, and still be named in [...]

By: Benn Rosales

Benn Rosales — Wed, 23 Jan 2008 05:51:50 +0000

be sure to go over to redfin and reads Glenn’s spin on it.

By: Athol Kay

Athol Kay — Wed, 23 Jan 2008 05:43:30 +0000

“That makes this the first housing collapse in which large numbers of buyers had a real estate professional explicitly looking after their interests.”

That is the kicker thought from that article. Gonna be a very interesting lawsuit to follow.

By: Bob in San Diego

Bob in San Diego — Wed, 23 Jan 2008 03:34:00 +0000

Brian, as you probably know, the agent was the lender. When the buyer finally got her hands on the appraisal, she saw the comps and the next question was “how did this loan get approved?”. I’m betting at least one loan fraud investigator will be sitting in the courtroom next week.

By: ines

ines — Wed, 23 Jan 2008 02:53:06 +0000

We never have all the facts and I know many agents that should be sued – we owe it to the customer to disclose everything about the market and its trends.

By: Brian Brady

Brian Brady — Wed, 23 Jan 2008 02:53:01 +0000

…but the LENDER made the loan…it MUST have been worth it.

By: Bob in San Diego

Bob in San Diego — Wed, 23 Jan 2008 02:49:40 +0000

The agent blew it.

By: Colorado Mortgage Lender

Colorado Mortgage Lender — Wed, 23 Jan 2008 02:13:23 +0000

I think the burden of proof would be very high, so I doubt anything will come of the suit. However, there is more to this than just the outcome of this lawsuit. People are going to start to realize that professional appraisals are something to value even if you aren’t required to get one. We will likely see more purchase agreements contingent upon a satisfactory appraisal paid for and requested by the buyer.

By: Robert D. Ashby

Robert D. Ashby — Wed, 23 Jan 2008 01:40:22 +0000

Ah, what the desperate will do. I guess lawyers don’t have to chase ambulances anymore.