Seller’s Listing Agreement with Shortsale Contingency / Authorization to Release Confidential Information to an Agent
An owner wanting to get out of his negative equity home meets with his real estate agent to discuss how he can sell it. The agent explains the process of the owner qualifying for a short payoff on the lender’s consent to the sales price once a buyer is located.
The agent, interested in listing the property as a shortsale:
- enters into a listing agreement conditioned on negotiating a discounted payoff of the loan with the lender [See first tuesday Form 102-1]; and
- obtains written authorization from the owner for the agent to negotiate with the lender to arrange for a short payoff on the owner’s behalf. [See first tuesday Form 124]
An agent listing a negative equity property needs authority from the owner to authorize the lender to release confidential loan information and carryout short pay arrangements with the agent. [See first tuesday Form 124]
On taking the listing with a shortpayoff contingency and receiving the seller’s authorization for the lender to release information to the agent, the seller’s agent immediately contacts the lender to discuss the steps the lender will take to proceed with qualifying the owner for a short payoff and the home for a shortsale.