My sister and brother-in-law have some investment property they are short selling.  All properties are listed with a Realtor.  The banks attorney contacted my brother-in-law and said that the bank wants the current Realtor contract terminated or the current Realtor has to agree not to be paid - because the bank wants to short sell the property themselves.  The attorney said the bank has a buyer.  The attorney told them he filed a motion for default but if my brother-in-law will allow the bank to sell the property as a short sale, they will stop the motion for default.  It sounds like the attorney may want to buy the property and does not want to go through the process with the Realtor because of back condo dues that the buyer has to pay.  Has anyone ever had this happen?


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Total BS. The bank didn't go find a buyer for the house. And if they had, they wouldn't be doing it through the foreclosing attorney. The attorneys, who are just small wannabe foreclosure mills have no contact with anyone involved with a short sale. Is the property in Florida, as you are? Sounds like maybe the attorney has a realtor buddy. The motion for default is no big stick to be threatening anyone with either. They should talk directly to the loss mitigation dept. at the bank, inquire about this, then report it to the bank. I don't know how back condo dues would affect using a realtor, unless you think the bank coils use the realtor commission to pay the dues...and that doesn't make much sense. Something definitely stinks here.

Thanks Ron.  Agreed! He is the foreclosure atty for the bank (we confirmed that).  Now - what to do!  I think talking to the bank would be the next step.

Thanks Wayne.  That's what I think too.  The attorney is in Ft. Myers and the property is in Destin.  I think the attorney may want the property.  There were 15 properties that were lost because of the oil crisis (all the rental reservations were cancelled and my sister had to carry these properties for a year).  They ended up filing BK and was released from the debt but the HOA continued to accrue.  If the atty wants the property and goes through the realtor that has the listing (not me - I am in Bradenton) then the buyer will have to pay a negotiation fee of 1.5% and the HOA dues.  I think the atty wants the property but does not want to pay these fees.  Hence the threat to move with the foreclosure and then just take the property.  If that happens, the HOA said they will pursue my sister for the HOA dues owed (around $6K).  Those dues that were owed prior to the BK have also been released but not those adding up since the BK was filed.  I would like to speak to the bank and tell them what is going on and see what they say.  This atty has not put anything in writing about this - he always calls my sister with this stuff.  The emails are follow up emails ("waiting for a call from your realtor", "when can we talk").  He is careful not to incriminate himself.  Thanks for the comments!

Maureen, who decided to hire a negotiator with a 1.5% fee? Separate question from the above issue, but curious. I'm doubting this attorney is trying to buy the property, but something is definitely up. Have your sister do a 3rd party authorization for YOU to speak to the bank, since you can probably find out more than she would.

I referred this to a realtor in the area where the condos are located.  I am not involved in the negotiation or the fee. Her realtor has the authorization and is contacting the bank to discuss.  Thanks Wayne!

Maureen let me know how this turns out, Destin is in my area.  There are some negotiators charging 1.5% fees and most of the time we have found they end up screwing it up like they have here.

I know your focus is on the property/foreclosure at hand, but if this attorney is truly doing this, I almost wonder if its worth filing a bar complaint.  Even IF the lender told the attorney this is what they want (and as you suggested, it is more likely the attorney is cooking up this scheme himself), it doesn't sound 'legal' for an attorney to request such a thing - even if their client (the lender) told them this is what they want. 

Also, depending on how bad this situation gets, the property owner can always file their reply/answer to the foreclosure complaint with the court and advise the court of what has transpired.  If this gets really bad, I highly suggest your family consult with their own attorney.  Do a little research and find a good foreclosure defense attorney - as you know, foreclosure attorneys in FL are a dime a dozen so do not choose someone randomly out of the yellow pages.  If what you suspect is true, this issue deserves to come out.  And I really doubt the bank has any idea...

You are right Sarah. In this case an expert foreclosure attorney can help in better way.

they should  consult again with expert realtor to come out of all this.

www.mariabarr.com

This is the first time I have read that bank want to short sell the property themselves it is very uncommon for bank to terminate the contact of the Realtor plus after reading your depiction it is safe to say that your sister and brother-in-law should consult any solicitor before taking any decision.
[url=http://www.kevinbradleyrealtor.com/]This may help you[/url]
This is the first time I have read that bank want to short sell the property themselves it is very uncommon for bank to terminate the contact of the Realtor plus after reading your depiction it is safe to say that your sister and brother-in-law should consult any solicitor before taking any decision.
http://www.kevinbradleyrealtor.com/

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