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 ?
Replies to This Discussion
-
Permalink Reply by Eric Mieles on
-
@Tara his duty will be to see what the lender does after values are established and to see if the lender counters. If they do his job will be to inform buyer 1 and allow him to either 1. Accept 2. Deny 3. Counter. If the buyer rejects than the deal is dead allowing him to now entertain buyer 2.
There is no send in all offers. Also please share if what you were told in regards to "send in all offers even though there not executed" was told to you from the lender themselves or a training/other agent.
You mentioned "in your state" I was not aware of lender state specific short sale proceSses.
-
Permalink Reply by Tara Nagelhout on
-
Hi Eric
The state of Oregon Department of Consumer and Business Affairs has told us that the banks has to be notified of ALL offers, even though the seller can't accept more than one at a time. Their basis for their opinion is that IF there is a higher offer out there and the bank is not made aware and if there is a deficiency down the road and it could have been smaller then the home owner has every right to sue us. It is a little crazy. They are also making Realtors who advertise specifically that they do short sales to register as a debt negotiator. This requires a bond and a lot of extra money and disclosures. Because of this I have stopped advertising that I do "short sales" and rather just that I have options. Most of the time when people call I try to just talk them through their options and explain the process of all the different options.
-
Permalink Reply by Smitty on
-
That is SCARY! You could be sued with ease if any buyer or seller caught wind of that and it caused an interuption of that first contract.
OMG - What if there is a foreclosure you keep getting postponed and you had an offer in being worked on and the auction was 30 days out, and you told the negotiator you had an offer for $25,000 more and it reset the process from the beginning and it wasn't enough time to get the auction postponed??? The seller could sue you, the buyer could sue you and this is all because Oregon dept of affairs advised you to notify the lender of all offers? I would never get involved in that kind of liability.
The seller also has a very ripe complaint to the Department of Real Estate for the agent violating the duty to the seller to get a deal that will close and avoid a foreclosure. Would this entitle the bank to increase its short sale payoff amount? Would this entitle the bank to squeeze out the first buyer and cherry pick other offers? If so, why should the bank be immune to regular market processes? Is there any other entity out there to any other kind of business transaction who can simply restructure the deal unilaterally to their own benefit? But what if the higher purchase falls through? Would a bank then BE REQUIRED to accommodate a lower offer? Would the bank be required to further extend any foreclosure sale dates?
The oregon dept of consumer affairs is implying an agent has a duty to the servicer, from where does that duty arise?
-
-
i think their point of view is that the best interest of the seller is getting the HIGHEST offer possible. You should see the disclosures they are requiring...scary confusing documents that make your head spin. I know what they are trying to go and they are trying to do a good thing, but not being Realtors and not being in the middle of it, they are making it much more confusing.
-
-
Highest is NOT best. I would personally take a cash buyer of $150,000 all day long that can close in two weeks, has no appraisals to deal with, etc., rather than a $175,000 FHA buyer who needs 45-60 days to close, has to go through a rigorous appraisal process, has only 3.5% to put down...
What they are doing is very scary.
-
-
-
They mean well, but they are causing more stress and work. We have had an AMAZING amount of funny stuff going on and they are just trying to stop it. Luckily one of our biggest flopping investment companies finally got sued and has stopped doing short sales.
-
-
Permalink Reply by The Negotiator on
-
Sending in the highest offer on a short sale is a death sentence. 99% of the time, the bank counters. If you send in an offer at the high end of the value spectrum, then there is no room to negotiate. If you were buying a used car, would you offer them your "best" right away? No, you would start low and come up to your number. Short sale 101 tells you to start low and come up. Starting with a position of strength is KEY! If you submit the "highest" off then you are putting you and your homeowner in a position of weakness and the chances of closing go way down (like the national average of only 1 out of 4 closing).
-
-
-
Yes. A short sale should be viewed as a traditional sale because it is except the lender approves the price and terms. He has a duty to get that first offer as far as possible and if the bank and buyer can't agree, then he can sign a release and move onto the second buyer. The second buyer can be told they are in back up position and they should be updated weekly.
-
-
Mr. "The Negotiator":
What do I have to do or say to make you PLEASE stop with the dang car analogy. We try to think a bit better of our career that than. Or at least I do. And a house is not a car and we don't do short sales on cars. Quit already...I am begging you. This is me on my knees, pleading and crying...oh Mr The Negotiator....please, oh please great and powerful one, stop comparing us to car salesmen.
-
-
If I were smart, I would get my debate opponent to lose focus by continuing the car analogies. Thanks for tipping your hand. I mean, you wouldn't go buy a used car and pull out your entire cash roll, would you?
-
Permalink Reply by Jill P on
-
I agree with Smitty that a cash offer of xxx can often be superior to to a financed offer, because "highest and best" doesn't just mean the most money... the terms and conditions can make or break a sale. In this case, I don't even think it will finance, so even if there's more money offered, no lender will finance it if it has permit issue and no certificate of occupancy.
As far as multiple submissions go... I've submitted many offers that have been countered along side of other offers on the table. The difference is... once the seller accepts and signs an offer, the parties are ALL (realtors included) in binding contracts. So, yes, multiple submissions are ok... provided that everybody knows... multiple counters from the seller to the various buyers are ok too. That's all in phase one... offer submission phase. But once the "best" contract" is agreed upon and signed, that's binding, no matter what comes along later. Because you can't go under contract with 2 buyers at the same time.
To use the car analogy... if I advertise a car for sale for $5000, and a buyer comes along and says they'll give me $4500, and I sell them the car, sign the paperwork, etc... I CANNOT change my mind if somebody comes along an hour later and says "I'll give you $5000 for the car". Why... because I've contracted with Buyer 1. Now Buyer 2 CAN buy it from Buyer 1, and I'll be sad, but once I signed the paperwork I'm out of the picture.
-
-
Dear God help us......we are going back to the car analogy. Shhhh...dont tell any outsiders. They will use it against us.
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons