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

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Tags: Brokers, Estate, FBI, Real, Sales, Short, You, all, focusing, must, More…offers, on, submit

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Permalink Reply by Brent Hammonds on September 11, 2011 at 4:27pm

In AZ, our Short Sale Addendum to the Residential Purchase Contract (AAR Form used by Buyers who submit offers on Short Sales) states the Seller MUST submit all subsequent offers to their lender (lines 13-15). We are able to "omit" those lines in our Additional Terms Section of said Addendum by stating that "term" is not applicable and is to be omitted. The requirement to submit all offers is then "contractually" negated and puts the onus on the Seller to accept or reject or counter this term/condition. If, as a Listing agent of a Short Sale, who receives an offer with those “terms” omitted (now making submitting subsequent offers a breach of contract) am I at risk? If I’m adhering to the Contract, am I at risk. Who do I answer to? FBI? Banks? Seller? My Broker? I see this as a clear cut contract law issue. I follow the Contract! If I’m crazy, please tell me.

Thanks,

Brent Hammonds, Associate Broker Solutions Real Estate, Scottsdale AZ.

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Permalink Reply by Wilma Hebrank on September 12, 2011 at 2:12pm

Lender will usually tell me to get the highest & best. They do not want to see the other offers.

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Permalink Reply by Cameron Novak on September 13, 2011 at 5:36pm

Doesn't the FBI have better things to do? I'm not a party to the executed purchase contract (of which there is only one).

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Permalink Reply by Teresa Willard on September 20, 2011 at 7:18pm

How many lienholders want to look at more than one P&S contract anyhow? They can't handle what they have and most I've experienced don't know what to do with a second one. Our MLS forms have specific language to address this, which helps. How about if the FBI looks closer at the lien holders for being involved in a conspiracy to commit fraud against the homeowners in not responding in a timely manner to short sale offers where often the home ends up going to foreclosure needlessly?

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Permalink Reply by Maria Evans on May 21, 2012 at 10:33am

And I think they should. In my short sales I prefer not to have the buyer. I want the bank to feel confident we have the best offer and if I have the buyer they may think I am hiding other offers. My first commitment is to have the job done for the seller.