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Listing agent buys own Short sale Listing

Posted by Maxwell Parsons on March 25, 2010 at 5:45pm in Short Sale Discussions

Has anyone bought their own short sale listing or heard of anyone doing this?  Do the banks have a problem with this because they may think its NOT an arms length transaction or look suspicious etc.?  Please let me know if you know of this happening and the banks not allowing this to happen.  Thanks!!

 

**I dont mean my own house i mean im listing someone elses property as a short sale and seller is NOT related to me and im buying it myself**

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Replies

  • Jon Zolsky April 5, 2010 at 3:33pm
    Maxwell,
    I recently called an agent and asked her if she was aware of approaching foreclosure sale of her listing. I saw that she was not changing the price, and was curious whether she was aware. She said that yes, she knew, and that the foreclosure was not going to happene because she has bought the unit herself. She did not not even change it on MLS. She has it there for the same price that she initially put it there.
    She said she called the negotiator and suggested she would buy it, and they OK with it.
  • Jim Little March 30, 2010 at 4:18am
    I was the buyer's agent in this transaction.

    Maxwell Parsons said:
    Jim,

    What was your relationship?
    i am talkign about listing a property as a short sale and then wanting to buy it myself and wondering if banks are allowing the listing agent who lists the short sale to buy the house. I would be the buyer myself and not related to the seller in any way besides being their agent.

    Jim Little said:
    I just had to sign an affidavit with GMAC attesting to the fact I was in now way related to buyer or seller.
  • Maxwell Parsons March 29, 2010 at 12:32pm
    Jim,

    What was your relationship?
    i am talkign about listing a property as a short sale and then wanting to buy it myself and wondering if banks are allowing the listing agent who lists the short sale to buy the house. I would be the buyer myself and not related to the seller in any way besides being their agent.

    Jim Little said:
    I just had to sign an affidavit with GMAC attesting to the fact I was in now way related to buyer or seller.
  • Jim Little March 29, 2010 at 12:20pm
    I just had to sign an affidavit with GMAC attesting to the fact I was in now way related to buyer or seller.
  • Maxwell Parsons March 26, 2010 at 2:23pm
    Thanks guys!!
  • Alan Remigio March 26, 2010 at 1:50pm
    I am not a RE agent. I negotiate and purchase all my shortsales, turn around and market it through an RE agent for value under current market. It has to be arms length and in some cases, the lender requests representation for the seller. Disclosure is key. You have to be very open about your intentions as you negotiate.
  • Juan Reyes March 26, 2010 at 6:27am
    I don't see a problem as long as it is an arms length transaction and it is disclosed to both the seller and the lender. At least in my state we have to disclose when we are licensed buyers.

    However, the bank may object to paying a commission to a buyer that is also licensed agent.
This reply was deleted.
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