While we were out on appointments, we got a panic call from the mother of a gal in our sphere. Her son had been served with divorce papers, was unemployed and currently living with her and due to a physical problem was unable to find other gainful employment. His wife, at the urging of her divorce lawyer, had hired ....oh yes, Agent Suzy...to list their home. Wisconsin is a marital property state and while it is not required that both parties sign the listing agreement, it is "usual and customary" and it IS required that both parties sign the offer. Son "John" had gotten a listing contract in the mail from his attorney...he was to sign it and the listing was to begin in a few days. He was not comfortable with several parts of the contract and asked us to review it on his behalf.
The price on the contract for openers....appeared high though I had not done a CMA so I put hat in the suspicious category of my mind. Had there been a CMA with the contract ...how did Agent Suzy arrive at the list price ? John didn't know....no CMA. The agent had then written in that the offer was not subject to agreement by John, only by his soon to be ex-wife...gee Suzy...that's not even legal....it's a marital property state...gee ...both lawyers...how did that one get passed you...Oh yes, you said you weren't responsible for the content of the contract, neither of you were real estate attorneys...geez !
It just gets better...or worse....John mentioned that when he was visiting the children, there were mailers at the house about foreclosure and short sales...should be be concerned about that ? Well John...who is paying the mortgage....He "thought" his soon to ex was "probably" paying it....Probably....well John...best find out...most direct mail campaigns on foreclosures and short sales are not sent randomly to homeowners.
Making a long story longer....the soon to be ex-wife was the only player in this game who knew the mortgage was not paid....neither attorney, the realtor or the soon to be ex-husband knew that the house was uʍop ǝpısd∩.
Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS
Oh, people can be sneaky. But, Agent Suzy (again?) should know better. Really. She should. Or her broker ought to know that she doesn't know how to write a listing contract. Don't you think?
Thanks for the post. Very interesting. Hope you do a follow-up.
Sad story I have to say. And looks like no one did their homework. I do hope that somehow the husband can get up to speed and take care of his business.
Agent Sally needs to get her hand smacked....
Wow! This sounds like a big mess that I would not want to be involved in. Here in Florida both spouses have to sign as well before property is sold. Was he at least trying to help with the mortgage payment or did he just walk away?
There are a lot of strange things going on in this market. I have dealt with divorcing couples but always make sure that I have both sets of signatures and agreement on the listing or contract. If not you are looking at a reciepe for disaster and maybe even an ethics complaint.
Gee Suzanne...you would think she would do a "net proceeds" sheet to find out there are not any...
Andrea...I hope you mean Suzy and not Sally :)
Hey Kim....he was trying to help until he had no income and then was working on getting funds from his IRA
The ex wife and the agent should both re-think their "strategy". I don't think it's going to work for them.
The strategy Barb is...they "think" is getting even....they will end up the odd folks out....
Wow! This sounds like a big mess that I would not want to be involved in. Here in Florida both spouses have to sign as well before property is sold. Was he at least trying to help with the mortgage payment or did he just walk away?
It's amazing what can be done when people are emotionally in trouble. Their thinking is usually flawed and everyone suffers.
As our other Florida agents said, all have to sign here. We also have homestead to deal with as well.
If Agent Suzy (darn her again) had done a sellers net sheet, she might of got a clue on the short sale. Oh Agent Suzy must not do that!????
So now Suzy gets to do a short sale from the listing side. Ashame she is going to have a learning experience at the expense of this former couple. Perhaps Agent Suzy should refer this one or set it up for a professional to negotiate and let her handle the marketing. I think a real price evaluation is definitely in order. DUH! The husband has just as much right to pick an agent and a list price. They should agree on who if they can not agree on anything else, that might be a tough one, but time is of the essence. I bet when he gets his attorney that it will be a new day on this listing! - ( I just reread this and he has an attorney- why didn't the attorney catch the one sidedness of this paperwork?)
So is anybody paying the mortgage? Has any service from the mortage company happened. It is his credit on the line too and he had better become pro active quickly.
And the beat goes on.
Divorce is so sticky! All I have to say about this one is that Suzy needs more education and I certainly hope you can find a way to help this poor guy! He needs you.
Your poor friends! I'm sure they are sick over their son's situation. It's a good thing they called you. I don't envy you the whole mess, but at least you could help them understand what was happening.
. It sure doesn't have to be our listing...but Suzy...oh surprise is a little short in the short sale experience and foreclosure is not a good idea for anyone....stay tuned !
Oh the tangled web we weave.... Always sticky in a divorce, even in the best of circumstances. Can't believe she wrote that clause iton the listing contract, geesh.