Can I sue my real estate agent for negligence because she undervalued our house by $100K, preventing us from getting a short sale approved?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can I sue my real estate agent for negligence because she undervalued our house by $100K, preventing us from getting a short sale approved?

We have been working with our real estate agent on a short sale. We told her we thought our home was worth $300K and that the bank would not approve less. She insisted our house was only worth $200K in this market. We got many offers at the $200K price, of course. The bank came back and said they would only accept $300K, nothing less. We have now wasted 4 months in trying to sell our house at a grossly underestimated price. I have much documentation of me saying the price was too low. We are now 2 weeks from foreclosure and will lose our house to to an inept agent. Do we have any recourse?

Asked on October 25, 2010 under Real Estate Law, Utah

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Ok, well the first thing you need to do is to stall the foreclosure so have you tried loan modification?  Do you owe more on the house than it is worth?  If the answer is "yes" can you offer the bank a "deed in lieu of foreclosure" which means that they will offer to take the house back and not do a formal foreclosure.  They need to waive any deficiency against you (the amount on the mortgage less what the house is sold for) so that you do not still owe them after the house is sold.  If you owe less on the mortgage than the house is worth you will get the surplus at the sale.  It is in your best interest to get as much for the house as you can.  If you feel that the agent was in some way negligent seek the advice from a real estate attorney in your area, but only AFTER you save your house and yourself here.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption