I just had an agent whose listing I want to show tell me that if my buyer is NOT an investor the seller won't accept our offer if my buyer writes. The sellers only want an investor so that they can rent back! I KNOW this can't happen, no lender allows it but can't find the documentation to send this agent. Can someone direct me please?
That's plain gross. That Realtor should have their license pulled.
Go look up on the registry of deeds for the house and see if you can find who services the note. If it's BOA or Wells, or one of the larger lenders, then we can post back the arms length transaction forms and you can kindly email it over and let the agent know they are about to commit fraud. Then again, I HATE to jump to conclusions. They COULD be taking the addendum and crossing out the section that states the seller will not live in the property after the sale.
Either way, I don't see that listing going anywhere. Even investors can smell fraud a mile a way. I don't see anyone with any ethics participating in that type of transaction.
Hey, it's the sellers problem if the seller wont accept a non investor offer and the sellers agent is an idiot. I guess the seller can do whatever they want, it is their home and they have to deal with the consequences.
I think it is just as dumb when lenders or Fannie Mae won't let an investor buy an REO for the first 14 days. They only allow owner occupants but I know that is different than this situation.
Move on and find a seller who hired an agent who knows what the heck they are doing.
thanks all! We do have a shortage of inventory in the first time buyer market. In Santa Rosa, Ca most homes under 325k, in GOOD areas, are getting multiple offers but these buyers have moved on and are writing on another house! thank God!
thanks for all your help!
Interesting thing that Fannie Mae can discriminate against investors on REO listings but a seller cannot discriminate against owner occupants? Actually sellers cant discriminate against anyone (Fair Housing 101).
There isnt a "law" that says that a seller may not rent the property from an investor/buyer; it is just written in some of the lenders addendums. Sometimes we over speak and say that it is a law when actually it is just a rule that a lender has made for control. I have a fellow agent that actually told Wells Fargo that the seller was going to lease it back and WF didnt care. The local community bank in our area encourages it. That was 2 years ago. Fannie Mae now has a program that allows the seller to remain in the property and lease it from the lender (bac, wells ect). More on jumping on board with that program due to a bunch of on sold property and shadow inventory.
that's very good info! I will check into it. I have a ton of sellers that would benefit from being able to rent back the property!