I just took a property off the market after receiving an offer , the offer is a low ball but what the heck , I felt at least it will get the ball rolling to submit package to bank since they did not want anything without an offer.
One week later I get a call from another agent that has a buyer that will pay 25K over what we get the home for and wants to get it in writting.
Can this be done ? , do I have an obligation to contact bank and let them know their is another interested party ?
neither offer would be enough to make the bank whole , so the seller could care less , the seller has filed BK and included the note , the BK has been discharged .
I would want to relist the home the same day of closing and re sell it to the new buyer
I feel the bank has had ample to time to do its due deligence and determine the price of this home and if they accept an offer it does not matter if someone comes the next day or the next year and offer more
What do you think ?
You listed the home (you just took it off the market after 'receiving an offer') and you now are in a position to receive 25K over 'what we get the home for' ... so you are the seller and you are the buyer and you are the realtor, too? If you put an offer in to the bank, you already signed something promising you wouldn't do exactly what you are setting out to do. Forgive me if I've misread what you posted here, but it sure seems like there's an insider track on that '25K over' offer. You realize it, too, don't you? So you are involving yourself in fraud. When banks get cheated, it's usually the taxpayer who winds up holding the bag, so .. yes, it does matter when scams get played.
This has been a hotly debated and sore subject the last few weeks. I'm not an agent, so you don't have to take my opinion too serious, however you should weigh the experienced agents opinions. I personally feel that it's illegal and a disservice to the community as a whole. As Richard and Susan said, when this happens it raises red flags and more people get hurt. I don't think it's worth taking a chance on your career, in addition to possibly spending some jail time.
Ummm....LOL Short sale flips are legal if disclosed, however the sheer nature of your post is disturbing. I'm with Susan, you're the buyer, agent...you're something..that's for sure.
You want to stay legit? Have the first buyer and seller sign and addendum that the home is being resold immediately for a $25,000 gross profit and submit to the bank. That's the only ways I'd even consider this non-fraudulent.
Get your story straight.
The get the ball rolling statement is very troubling to me and screams of inexperience especially if LOW BALL means that the offer isn't even in the ball park and from the sounds of it, the offer is not even an offer to me.
If you are the LOW BALL buyer and did not disclose, I would suggest that you step aside and present the higher offer to the lender instead of your offer. Your duty is to your seller and in this case you are not protecting your seller.
This smells of inexperience which will later become a talk of fraud.
Eric Mieles said:
There are several holes in your descption of this deal that makes it all wrong. The not disclosing (as smitty mentioned), "getting the ball rolling" def could be a waste of time as well as not upholding fiduciary responsabilitiesfor your seller, how did the agent just know to offer $25k more? Was it still on the market as active? Did you state you would accept back ups?
I TRULY can believe this is still happening (although I guess it will always continue).
Get the ball rolling was a stategy in what maybe 2008/2009? The very first case for mortgage fraud happen to real estate agents in Connecticut under just this circumstance.What about the second buyer offering 25K more? Do you think they would not get a little upset if they knew this was happening as well?
Unfortunately the seller was exposed to "bad advise" taking the Low Ball offer! (Has the lender approved this low ball price yet?) Hopefully it may all work out, lenders figures will not be favorable to the low ball, they will walk, and hopefully the realistic buyer may have a shot at the property! Then again, is the first contract executed? Did the agent obligate the Seller by having him execute the low ball offer?
Gosh, I would be embarassed to even post such a thing!
Let me clarify :
I listed the property at $129,900 , the property is NOO , it will need 20-30k to bring it up to code , the market value once brought up to code would be less than 150K
After 35 days I got an offer for 60K ( Aurora the servicer would not do an apparisal or give an indication if the PSA would even allow the short sale , so " getting the ball rolling " has nothing to do with in experience but more with dealing with the banks incompetency. Aurora insist on a sales contract to get the SS process moving
The seller included the home in a chapter 7 and the debt has been discharged , the seller to say the least is not very motivated and could care less what it sells for , the note already has been discharged in the BK
After I present the 60K offer ( I have the buyer ) the property is taken off the market during which time I get a call from another broker that they have a buyer that will offer 25K OVER MY BUYERS OFFER .
My buyer is a low baller and will not go over 85K on this property anyway and I doubt it will go for 60 , but the contract is already in and waiting for a bank response , so if the bank agrees to the 60 , then what happens ?
What if the buyer offrering 25K over my buyers offer is BS and does not even qualify ? at least I know my 60K buyer is cash and can close whenever the bank is ready