Shortsale then Flip , is this allowed ?

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 ?

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Permalink Reply by Jeff Payne on September 12, 2011 at 10:57am

Beverly,

Can you start a new post with this? This is something that is important enough for a new post.

Jeff

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Permalink Reply by The Negotiator on September 12, 2011 at 11:42am

What about the article? The way the fraud was performed is in no way the same thing as this topic's original question.

The fraud was performed because the agents had a higher offer in their hands before the agents submitted their own lower offer. The agents didn't tell anyone what was going on and therefore you have fraud.

The original question stated that a buyer had a contract and then turned around and planned on reselling... I think...

As long as the lower offer was EXECUTED first and the disclosure of resale was issued, then, there is no problem reselling to the higher offer.

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Permalink Reply by Smitty on September 12, 2011 at 12:39pm

EXACTLY. To my knowledge this is the ONLY KNOWN case of prosecuted short sale fraud where two agents were convicted. This case is over a year old and has been discussed to death. There were NO disclosures, there was a higher offer that was signed first and then a lower offer submitted...the whole thing was racked with issues.

This is an old case. Anna McEllany got 8 months in prison and 3 years probabation. I couldn't find the sentencing of the second agent.

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Permalink Reply by Jill P on September 12, 2011 at 5:32pm

Most definitely fraud on the part of the realtor.

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Permalink Reply by Joseph Alfe on February 24, 2012 at 1:36am

this is real estate 101. If you have an executed contract and it is still in force, you MAY NOT substitute another contract no matter what the offer is. I'm amazed at what I read here sometimes.