Short Sale negotiator not disclosing

[mbmullen]

I posted a couple of weeks ago that we're working with a company on our short sale that has an acquisition side to the company. When the house is listed, they put in an offer with the bank to get the process started while we market for an 'end buyer'. Once we find that buyer, this company does a double close and makes their money in the spread. Moe said that he thought this was a little shady. We had checked with our attorney when we started working with them and he said that as long as they were disclosing everything to the lender it was okay. Well yesterday we found out that they haven't disclosed that to any of our lenders. Is this as bad as I think it is? We have pulled them from two of the properties already but we're not sure what to do with the one that already has an end buyer in place as we're really close to closing that one. Help, please, what should we do? We certainly don't want to get in legal trouble but we're desperate to get rid of these properties.

[mbmullen]

Update on my post from this morning. After speaking with my attorney I realize that his failure to disclose is a very big deal and I was advised to have nothing more to do with him. I have been trying to reach my negotiator with Bank of America all day to ask them whether they were aware of his intention to flip for profit. This is the one house with an 'end buyer' who is patiently waiting for the short sale company to get their final approval. This buyer is fully aware of the whole transaction. However, if B of A did not receive a disclosure, we will pull that file and will submit the end buyer's contract directly to them.

My advice to all of you out there facing a short sale is this, find a Realtor who knows what they're doing. That and due diligence on your part are all you need.