Comment

Comment by Joseph G. Altman on November 12, 2010 at 2:10am

I am happy to join the group.
Joe

Comment by Jeff Payne on September 30, 2010 at 4:12am

I agree with Joe completely. Arms length means that there is no relationship between the buyer and the seller. Might get sticky if the agent/short seller is working with the buyer but as long as the agent is following the code of ethics, then the transaction should be arms length. Easy way around that is to refer any buyers to another agent if that concerns you.

Comment by joe beauchamp on September 30, 2010 at 3:52am

I question the usefulness of an e&o policy that is so weak it won't cover issues if someone in the brokerage has some ownership. This is not an area I spend a lot of time in, so there could be some close-to-legitimate issue of concern that I don't see. Are bank REO companies not allowed to try to sell the bank properties that they are handed? Gee, isn't that about the same thing? [Why is working at a company and selling a property somehow more dangerous than working at a company and selling through another company? If you are a realtor, you have your code of ethics no matter which company you are in, etc.] I'm guessing the e&o insurance co and the lawyers would recommend that you not buy food at a store where you work, etc. for the same "reasons". Sure, why take advantage of discounts, etc. when you can pay more and have a harder task of dealing with another company? HA! Can you see why I take lawyer "advice" with a big grain of salt? ;-)

You could give the insurance co a call for free advice on your situation, however, like lawyers, count on them saying "no" whenever possible. Lawyers rarely get in trouble for saying "don't do it", so they say that a lot. Yep, a lot of good deals get killed by them protecting themselves instead of representing you (you are number two to them - and consider that any way you want). So, I take their advice generally to be as useful as someone saying, "if you think that there might be an issue, don't do it." Bad criteria.

Comment by Jaime Woods on September 29, 2010 at 5:42am

Actually, after reviewing our company's e&o policy, our Broker had some concerns about agents listing their own short sales within the same company - she has had several discussions with the area real estate lawyers who state that it is much safer to have the agent list their property with a different firm - just from an e&o protection point. AND, several e&o policies do not provide coverage for issues that arise when an agent has someone within their brokerage list their investment/non-owner occupied properties...something to review prior to moving forward!

Comment by Michael Schneider on September 29, 2010 at 4:59am

Thanks, Joe and Brigitte, for the information and the point-of-view.

Comment by Brigitte Powell on September 29, 2010 at 2:25am

I can't see an issue with that at all. Many RE companies require that if you sell your property you must list it with the company you work for.

Comment by joe beauchamp on September 28, 2010 at 9:47am

I cannot say about a GMAC form - haven't seen one and should have by now.
You are looking for some tanglement with $ and property here. I don't see one. Buyer and seller cannot be related - the fraud being that the seller is handing the property to the buyer to get rid of the "extra" debt and it really is going back to the seller - or stays in the seller's family - a no-no.
The only no-no for an agent is that he do everything on the HUD-1, no money under the table.
Even if the listing agent is his brother, he is not getting something of this property which would be an arm's length question.

That is my take w/o seeing any GMAC form. I can only recall WF doing that and SunTrust. I don't remember running into those with any other banks.

Comment by Michael Schneider on September 28, 2010 at 4:58am

I have a GMAC arms length question. Any help on this would be greatly appreciated.
I have a potential client who is the manager of a real estate office. He must sell his property, which will be short.
The question is: Can he list the property with his real estate company? He would not be the listing agent. Would this violate GMAC's arms length agreement?
Does GMAC require an arms length? And, if so, would someone be willing to share this?

Comment by Kent Dills on September 14, 2010 at 8:39am

My experience with second lien holders Jim is that they want the same exact package as the first lien holders. Plan for than as the worst case and then you won't be disappointed if it goes that direction!

Comment by Jim Stewart on September 14, 2010 at 8:23am

Are there any specific differences between a second lien submission for GMAC as opposed to a 1st lien? I called GMAC and the person there was worthless. Couldn't tell me anything and wouldn't transfer me to someone else since my authoriztion wasn't uploaded yet.

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