I would definitely escalate that file to executive resolution team and ask for a new negotiator! Look at all the arm's length stuff we have to execute for short sales. That negotiator should already have removed themself. It would be really bad if the seller lost the home to foreclosure.

I'm not a short sale expert but isn't there something about an arm's length distance in a transaction?   

What was your feedback?

It sounds like a problem to me.  What Candice said.

Depending upon how it has been handled.  It is not a wise idea for the negotiator, so one would hope all documents are in place for the rental and handled as they would would any other person who would be renting.  Of course, proper notice for departure from home upon closing, etc....too few details to make a clear determination.  A lawyer can best address their particuars. 

Sounds like a potential conflict of interest to me. But I'd get a true legal opnion on this. And Michael Jacobs has raised an important point about the arms length transaction aspect. Candice A. Donofrio has also provided a good starting point to move the process along.

I like the answer provided by Candice A. Donofrio. 

Matt Keough, New Castle County, DE looks like conflict of interest to me - however, not an attorney - ask your friend to check with an attorney for the options.

Here we have really, really onerous landlord tenant laws that make it hard to evict any "occupant" without giving the "occupant" the right of first refusal.  And this could hold up a transaction for a couple of years.  So here, it would be serious malpractice.

Sounds like that would NOT be an Arms length transaction.  Too much opportunity for collusion on the Negotiators part.  Just like a judge, they should recuse themselves from this particular case.

I think they would have to be a conflict

It smells of impropriety and I would certainly want to talk with a supervisor about this and have the case reassigned.

Yes, it sure sounds like it is.

I never like to throw another agent under the bus, but this might be the one to call Greyhound for. 

Yes!  That sounds like the negotiator is working in the interest of their family.  Fire them and negotiate yourself (whoever the agent is.)

If the agent is aware, he or she may be in violation as well.  I would strongly suggest he/she consults with an attorney asap.  

I would think that this is yes, but checking with the Dept. of Justice or who could give the right answer to would be necessary. I would also check with the lender on how they view this so you or the agent are not a party to this.

That definitely sounds like a conflict of interest, and one would wonder what the bank might think. I like Candice's comment as well

I say yes. Hard to move along the property quickly & get a relative thrown out of it right?

There are probably bigger issues than that if the "renter" is paying rent and the owner or negotiator is pocketing it.  Makes me wonder if the banker knows there is a renter in the house!  HELLLLO ATTORNEY

Refer the person who is asking the question to real estate attorney.  The he said she said along with missing details makes any scenario hard to sort out.  As agents we do not give legal advice or opinions.  Get out of middle even though you want to help

With a short sale you never know where the blame may be however this doesn't smell right to me!

Who is collecting the rent money?

The seller is still the (only) owner,so sure, they can rent out the property and collect rent.

If the negotiator is the one getting the rent money, for sure that is a conflict of interest.  If that is true, the negotiator  would have no incentive to work on the short sale.

Eve

It sure sounds like a conflict of interest to me. I would ask for a new negotiator.

When in doubt, disclose. Also, it might be a conflict if the relative plans to stay on after it sells.

Sounds like a conflict to me, I would suggest going up to a higher authority who can replace the negotiator.

Ask for a different negotiator.

Yeah, We never really know what’s going on in situations. On the surface it would appear that would be a conflict of interest.

Does this negotiator work for the lender, or the Short Sale Seller?

At frst glance, there is a conflict of interest!

Candice A. Donofrio has this one.

DEFINATELY, during a short sale a professional negotiator should be used and not one that has a relative in the property. These days we can get anwers in as little as 30-45 days on our short sales, there is no longer a 6 month wait when done correctly

Matt Keough, New Castle County, DE  Wow, this is interesting question.