FBI Focusing on Real Estate Brokers- Submit ALL offers

 

The FBI is focusing its attention on real estate brokers to see whether or not the broker submitted all offers to the lender in a short sale transaction.  A real estate broker who does not submit ALL offers to the lender could be charged with being involved in a conspiracy to commit fraud against the lender.  

 

 

Please take a look at this link FBI focusing on Real Estate Brokers on submitting all offers

I would love to get your feedback on this one.

 

 

 

 

 

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Permalink Reply by Aida Gonzalez on March 13, 2011 at 2:51am
Thanks Donna for your posting.  I had informed to Lenders that i have two or three offers at same time for a propert, and on several occasions I receive same answer:  Send the highest one, and this is very logic. Why to send , the lowest ? Also,  the owner has the right to choose which  offer is the 'highest and the best'. When the property is an REO, what does the realtor doees? Which one is the best and highest? It is illegal to sign two offers for same property no?
Permalink Reply by Aida Gonzalez on March 13, 2011 at 2:58am


Bill, the lender will not accept any unsigned document by seller. And the seller can't sign two offers for same property. How can be possible to have two executed contracts at same time for the same property.


Bill Travis said:

I would submit all offers to my Seller, unless the seller gives me written instructions to not present other offers. If the seller does not sign a particular offer then there is no short sale contingency for that offer. The banks only work on the contingency. Therefore, there is nothing to submit to the bank, in my layperson opinion.
Permalink Reply by Stephanie Grantham on September 11, 2011 at 5:53am
We submit all offers to our seller, our seller then determines which offer they would like to present to their lender (usually highest and best offer). The seller then signs the contract so we can submit to lender. You can not have more than one contract on a property at a time. In the event we receive an offer after the other is submitted to a lender we allow it to be presented to the seller as a "back up offer" and if the first buyer rescinds their offer then we will submit the back up offer as the new offer.
Permalink Reply by John Treadwell on March 13, 2011 at 3:08am
Well Here in Nevada ,We can't summit all ,only the one the seller accepts.  They pass a law to that ,because some agents would take a offer ,and summit to the lender ,and weeks later take a better offer turn it in after the frist buyer had waited for approval.  Then get bump them.  The compliants came into the Nevada board ,so they made us stop sending in more than one at a time.  We can hold as many back up offer as we want too .
Permalink Reply by Steve Early on March 13, 2011 at 3:10am
I agree with Bryant. We have had conversations with multiple servicers on this issue. In one case we told the servicer that the listing agent had an offer signed by a buyer (but not by the seller ... yet) that was $60,000 higher. The negotiator said that the offer she had on the table was the one she was going to work until she either the offer wouldn't work out or the buyer walked. Only then would she even consider the existence of another offer.
Permalink Reply by Lorie Gould on March 13, 2011 at 3:16am

All offers are between the owner on record and the buyer, not the bank.  First and foremost, the bank will not process an offer they process a contract.  They do not have the authority or the legal ability to sign an offer to create a contract.  Presenting offers to the bank when a contract is submitted is not acting on good faith for the contract presented and could open up both the seller and the seller's brokerage to a lawsuit.

 

There is a lot of mortgage fraud being committed with short sales.  I do not beleive not presenting all offers to the bank is committing fraud.  

 

We are in interesting times... the fallout will be interesting when the dust settles.

Permalink Reply by Smitty on March 13, 2011 at 3:35am

I was thinking about this today.  This is similar to WF trying to force me to sign a listing agreement addendum stating I have a fiduciary responsibility to present all OFFERS to them????!!!! Uhhhh...no, my duty is to my homeowner and you can threaten to pursue me criminally but you have NO basis to if I don't present a higher offer.  What do you plan on doing .. sue me for the difference between the first and second contract?  Push off any foreclosures to make sure ALL offers get in??  No, this is the MOST RIDICULOUS thing I've seen.  On what grounds does the FBI have to force agents to present all offers to lender who DON'T WANT THEM?!?!

As far as I know, there are no laws that state I have to present all offers.  This is another lender's way to try to confus us agents. The lenders are trying to force us to be held accountable for THEIR MISTAKES.  NO THANK YOU. 

Permalink Reply by Laura Giannotta on March 13, 2011 at 4:07am
I don't understand.  Isn't it the property owner who decides which contract to sign (execute) and send to the bank?
Permalink Reply by Melina Tomson on March 13, 2011 at 4:33am

Actually I think there is confusion due to use of terminology.  I believe NY has offers, and then contracts.  Most states an offer is a written purchase and sale agreement which then becomes an executed contract once all parties sign. Those documents are one and the same, at least here on the west coast.

In NYC, my understanding is that they have offers which aren't accepted in a purchase and sale kind of way are different than their contracts.  Honestly, I don't understand the difference but they are two separate documents.  I think this release is really specific to NYC real estate because they just do things differently there. 

Permalink Reply by Melina Tomson on March 13, 2011 at 5:00am

Just to clarify, I don't think in NYC that they send contracts to the bank. I think they only send offers because of the way they do things there using attorneys in their transactions.

 

Permalink Reply by jennifer mullen on March 13, 2011 at 5:19am
Glad everyone seems to feel the same way I do.  We absolutely do not send all offers to the bank.  How unfair to the original buyer!  In my opinion, the FBI is looking at the wrong party here!
Permalink Reply by Mary Margaretich on March 13, 2011 at 5:22am
The FBI has bigger fish to fry. All of the previous comments about the lender not being a party to the contract seem logical and that is the assumption I am going with. Highest and best offer wins. I do put the next best offers in a first or second backup position with a CAR form PAA. This business is hard enough without receiving misinformation.

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