There’s an increase of legal suits against Brokers/Realtors that handle short sales.
The lawsuits are the result of a variety of different short sale scenarios:
- The lender did not absolve or relieve the debt (deficiency).
- The seller received a 1099-S for the deficit of the short sale amount.
- The broker/agent gave legal, financial and/or tax advice.
- Broker/Realtor acted outside the scope of their area of expertise.
- Broker/Rrealtor did not explore nor provide loan modification options
- Broker/Realtor misguided client on the impact a short sale would have on credit score