I am curious to know if it is possible for investor buyers to bypass the normal short sale process and directly negotiate with banks to purchase a short sale property. I currently have a seller client who, prior to listing with me, had been contacted by an investor about a year ago who wanted to purchase her home. She did not pursue that option then; but now that we are in an agency relationship, she decided to reach out to this investor who, upon learning that the house was listed, promptly asked her how long the listing agreement was for, as he was not going to go through an agent and that his lawyers could get the short sale approved. Is this normal, and will any bank allow for a short sale without the house being listed? It sounds to me that the only way that can happen is if the investor is a licensed agent themselves...which means that, in effect, this investor is soliciting my listing under false pretenses...
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Mr. Lancaster.
Thank you for joining this discussion. First of all this investor is a major buyer of distressed residenial notes, thus the reason why the banks are willing to sell them. The investor does not purchase individual notes one at a time, but they buy portfolios of them in the tens of millions of dollars.
Correction my previous response was in reference to the other area where this investor operates which is buying portfolios. The way this investor is able to purchase individual notes, is because they group together all of the bad paper that is from the same bank and once they are able to get into a position where leverage is established There are items that the banks are required to produce in reference to a particular mortgage, and if the items are not bought forward in a timely manner the lenders would be open to massive lawsuits.
So to avoid going to court a discount is negotiated and the note is sold to the investor.I am not an attorney, but I have closed several transactions with this investor; and all of them have been short sale elimination transactions; that were stopped in the middle of the process and the homeowners kept their property. I will say however that the investor is a major hedge fund.
Some of my closed deals included wells fargo. chase, and boa.
I've heard of this, I've just never seen it done.
Would you like some information?
I have numerous pending deals California, Alabama, Washington State, New York, Pennsylvania, & Texas. It's all good.
Same here Smitty. I met with a group that had several hundred million dollars with plans to buy notes like this but they never got any traction with the lenders. It was about the same time BofA started service releasing most of their toxic assets to Greentree and Nationstar.
I have never heard of it happening in my area of Florida
Jeff, when I asked for proof of them buying the note, I never heard from them again. Like I said, I've heard of it, never seen it.
Florida & Georgia.
What cities in Florida?
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