Made it all the way to investor approval to be denied, My realtor and seller are related
I am a buyer that found a house on realitor.com I did not have a realitor so i contacted the listing agent directly. we put in a offer at fair market value and got all the way to investor approval, yesterday the realitor informed me that the bank has denied the offer due to the seller of the house is her sister. the realitors broker said that he would put another realitor on the case, now the bank doesn't want to deal with the broker or the realitor at all. Does anyone have any suggestions how to fix this.
Appreciate any Help
Paul
Replies to This Discussion
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Permalink Reply by Christina Conrad on
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Jeff,
What is this program you are referring to where the seller can get $20,000?
Jeff Payne said:FHA short sale. We tend to see alot of people saying that the seller can not take any money from a short sale but I always caution to never say never. I was on a conference call with Citi execs a few weeks ago and they are offering cash to a short seller, as much as 11,000 so far, Chase has a program that they pay 20,000, HAFA has relo money. It is more common today that the seller will recieve money at closing.
Scott Korbin said:Jeff, I know that on HUD transactions where there was an Approval to Participate that Sellers are permitted to receive up to $1,000 Cash at Closing. What type of transaction was yours?
Scott
Jeff Payne said:Joan, be careful to say the seller can not recieve any proceeds from the short sale. I am closing one this week and the seller is getting 1000.
Joan Psarros, CDPE, CRS, SFR said:I am doing a shortsale now and I informed the negotiator that the seller was my brother's daughter. I had to have an arm's length transaction form signed by all parties and under my name I stated and signed that the seller is not receiving any money from the sale of the property or from my commission. This is the concern of many banks as in a shortsale the seller cannot receive any money from the proceeds. I am working very hard on this transaction and it wouldn't be fair for these sellers not to be able to have me work on this file due to a relationship. Unfortunately, when working with some negotiators who really do not understand real estate they have a problem with this. Possibly the agent didn't inform the bank when the offer was presented. If there is a relationship it should be disclosed to all parties of the contract.
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Permalink Reply by Jeff Payne on
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It is a homeowner incentive program, I know that Bryant Tutas has done at least one. I believe they are Chase owned loans, Chase portfolio. Citi is offering as high as 11,000 for a homeowner incentive.
Maybe Bryant will tell us more about it....
Christina Conrad said:Jeff,
What is this program you are referring to where the seller can get $20,000?
Jeff Payne said:FHA short sale. We tend to see alot of people saying that the seller can not take any money from a short sale but I always caution to never say never. I was on a conference call with Citi execs a few weeks ago and they are offering cash to a short seller, as much as 11,000 so far, Chase has a program that they pay 20,000, HAFA has relo money. It is more common today that the seller will recieve money at closing.
Scott Korbin said:Jeff, I know that on HUD transactions where there was an Approval to Participate that Sellers are permitted to receive up to $1,000 Cash at Closing. What type of transaction was yours?
Scott
Jeff Payne said:Joan, be careful to say the seller can not recieve any proceeds from the short sale. I am closing one this week and the seller is getting 1000.
Joan Psarros, CDPE, CRS, SFR said:I am doing a shortsale now and I informed the negotiator that the seller was my brother's daughter. I had to have an arm's length transaction form signed by all parties and under my name I stated and signed that the seller is not receiving any money from the sale of the property or from my commission. This is the concern of many banks as in a shortsale the seller cannot receive any money from the proceeds. I am working very hard on this transaction and it wouldn't be fair for these sellers not to be able to have me work on this file due to a relationship. Unfortunately, when working with some negotiators who really do not understand real estate they have a problem with this. Possibly the agent didn't inform the bank when the offer was presented. If there is a relationship it should be disclosed to all parties of the contract.
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Do you have to specifically ask for a certain program..and this can be done on short sales? I am confused?
Jeff Payne said:It is a homeowner incentive program, I know that Bryant Tutas has done at least one. I believe they are Chase owned loans, Chase portfolio. Citi is offering as high as 11,000 for a homeowner incentive.
Maybe Bryant will tell us more about it....
Christina Conrad said:Jeff,
What is this program you are referring to where the seller can get $20,000?
Jeff Payne said:FHA short sale. We tend to see alot of people saying that the seller can not take any money from a short sale but I always caution to never say never. I was on a conference call with Citi execs a few weeks ago and they are offering cash to a short seller, as much as 11,000 so far, Chase has a program that they pay 20,000, HAFA has relo money. It is more common today that the seller will recieve money at closing.
Scott Korbin said:Jeff, I know that on HUD transactions where there was an Approval to Participate that Sellers are permitted to receive up to $1,000 Cash at Closing. What type of transaction was yours?
Scott
Jeff Payne said:Joan, be careful to say the seller can not recieve any proceeds from the short sale. I am closing one this week and the seller is getting 1000.
Joan Psarros, CDPE, CRS, SFR said:I am doing a shortsale now and I informed the negotiator that the seller was my brother's daughter. I had to have an arm's length transaction form signed by all parties and under my name I stated and signed that the seller is not receiving any money from the sale of the property or from my commission. This is the concern of many banks as in a shortsale the seller cannot receive any money from the proceeds. I am working very hard on this transaction and it wouldn't be fair for these sellers not to be able to have me work on this file due to a relationship. Unfortunately, when working with some negotiators who really do not understand real estate they have a problem with this. Possibly the agent didn't inform the bank when the offer was presented. If there is a relationship it should be disclosed to all parties of the contract.
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Permalink Reply by Michael Schneider on
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I have completed one of these Chase "out reach" short sales. They direct-mailed my client, who perhaps coincidentally had started the short sale. The solicitation was "up to $15,000 back", and indeed that was the amount received. This loan was seriously delinquent, owned by Chase, acquired from WAMU. The negotiator was a dream to work with, about the best experience I've ever had with a short sale. I think Chase simply wants these loans off their balance sheet, no doubt the book balance is deeply discounted.
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Permalink Reply by Joan Psarros, CDPE, CRS, SFR on
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Jeff, thanks I should have mentioned that on the seller getting no proceeds I was talking on this particular shortsale. I just did one where the sellers received $10,000 from Chase. On this one the bank (GMAC) wants the sellers to bring $2,000 and keep countering higher on the shortsale. So, there is not a chance of there being any money for the sellers if it ever closes. I am only working on this as hard as I am as the sellers are a good couple that have had a large loss in income and trying to provide for their three young children. The house is only valued at $40,000 so this is not a shortsale that many agents would want to spend so many months with multiple BPO's being done and constant requests for more information.
Scott Korbin said:
Jeff, I know that on HUD transactions where there was an Approval to Participate that Sellers are permitted to receive up to $1,000 Cash at Closing. What type of transaction was yours?
Scott
Jeff Payne said:
Joan, be careful to say the seller can not recieve any proceeds from the short sale. I am closing one this week and the seller is getting 1000.
Joan Psarros, CDPE, CRS, SFR said:I am doing a shortsale now and I informed the negotiator that the seller was my brother's daughter. I had to have an arm's length transaction form signed by all parties and under my name I stated and signed that the seller is not receiving any money from the sale of the property or from my commission. This is the concern of many banks as in a shortsale the seller cannot receive any money from the proceeds. I am working very hard on this transaction and it wouldn't be fair for these sellers not to be able to have me work on this file due to a relationship. Unfortunately, when working with some negotiators who really do not understand real estate they have a problem with this. Possibly the agent didn't inform the bank when the offer was presented. If there is a relationship it should be disclosed to all parties of the contract.
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Permalink Reply by The Negotiator on
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I like agents like you. Do it for the people, not the checkbook. Far to few out there willing to sacrifice.
Well done!
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Thank you. I only hope that we can all survive when this is over. After 26 years in the business I never thought we would come to this. To see people lose everything and have no one out there to help them. I have had some good people out there that have given me assistance and I believe in giving back.
I like agents like you. Do it for the people, not the checkbook. Far to few out there willing to sacrifice.
Well done!
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Permalink Reply by Kathy Dyer Realtor Rosevillle Ca on
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I
I just closed a Chase short sale that my clients got 30K also acquired from WaMu. The word is that maybe Chase does not have all the paper work to support doing a foreclosure. Only a select few people are solicited by Chase to qualify for this program. In our case, Chase solicited my client to do a short sale after a loan mod trial that was taking over 1 year. I was contacted once the client received a letter from Chase telling them that they qualify for the Chase Outreach Program. I got approval in 2 days! It was the smoothest short sale I ever did.
I too have another short sale with B of A that is taking over 9 months now. Finally got the buyer to contribute to a 7,000 K HOA lien, Let’s see if Bank of America let's the buyer contribute??? This condo is going for 35K. Lots of hard work for very little money, but that is OK. I want to help the homeowner out so he does not have to foreclosure. We work hard for most of them though in any case!
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Kathy Dyer
CDPE
916-759-2147
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So, this money incentive..Chase is contacting the sellers? This is something that we can request for the sellers?
Kathy Dyer Realtor Rosevillle Ca said:I
I just closed a Chase short sale that my clients got 30K also acquired from WaMu. The word is that maybe Chase does not have all the paper work to support doing a foreclosure. Only a select few people are solicited by Chase to qualify for this program. In our case, Chase solicited my client to do a short sale after a loan mod trial that was taking over 1 year. I was contacted once the client received a letter from Chase telling them that they qualify for the Chase Outreach Program. I got approval in 2 days! It was the smoothest short sale I ever did.
I too have another short sale with B of A that is taking over 9 months now. Finally got the buyer to contribute to a 7,000 K HOA lien, Let’s see if Bank of America let's the buyer contribute??? This condo is going for 35K. Lots of hard work for very little money, but that is OK. I want to help the homeowner out so he does not have to foreclosure. We work hard for most of them though in any case!
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Kathy Dyer
CDPE
916-759-2147
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My last clients had tried unsuccessfully for many months to do a loan modification. Then they received a call from Chase to do a shortsale and they would receive $10,000 when they closed (which they did receive). So, I am wondering if the borrowers have to first try the loan mod?
Kathy Dyer Realtor Rosevillle Ca said:I
I just closed a Chase short sale that my clients got 30K also acquired from WaMu. The word is that maybe Chase does not have all the paper work to support doing a foreclosure. Only a select few people are solicited by Chase to qualify for this program. In our case, Chase solicited my client to do a short sale after a loan mod trial that was taking over 1 year. I was contacted once the client received a letter from Chase telling them that they qualify for the Chase Outreach Program. I got approval in 2 days! It was the smoothest short sale I ever did.
I too have another short sale with B of A that is taking over 9 months now. Finally got the buyer to contribute to a 7,000 K HOA lien, Let’s see if Bank of America let's the buyer contribute??? This condo is going for 35K. Lots of hard work for very little money, but that is OK. I want to help the homeowner out so he does not have to foreclosure. We work hard for most of them though in any case!
.
Kathy Dyer
CDPE
916-759-2147
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Permalink Reply by Rosalinda Hernandez on
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Paul
Bof A does allow the seller and listing agent to be related and still pay a commision it is still an arms length transaction .However The buyers agent cannot be related to the seller becuase that is not an arms length transaction.
have the agent refer you to another agent to represent you , he would get a referral fee paid to him from the receiving agent. If its been denied he just has to resubmit if not Have the agent withdraw the offer on equator and resubmit it using the other agent representing you the buyer and that would work. I represented a family member as a listing agent and they allowed that but did not pay me a commision which later I found out through an executive at bofA that they should have paid me, the commison lost was over $30,000. I hope this helps Rosalinda Hernandez
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+1, I agree 100%!!! Do the RIGHT thing and don't be so concerned about the money. Funny part is that if you do that, the money will come to you 10 fold!
The Negotiator said:I like agents like you. Do it for the people, not the checkbook. Far to few out there willing to sacrifice.
Well done!
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