The FBI is focusing its attention on real estate brokers to see whether or not the broker submitted all offers to the lender in a short sale transaction. A real estate broker who does not submit ALL offers to the lender could be charged with being involved in a conspiracy to commit fraud against the lender.
Please take a look at this link FBI focusing on Real Estate Brokers on submitting all offers
I would love to get your feedback on this one.
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Bill, the lender will not accept any unsigned document by seller. And the seller can't sign two offers for same property. How can be possible to have two executed contracts at same time for the same property.
Bill Travis said:
I would submit all offers to my Seller, unless the seller gives me written instructions to not present other offers. If the seller does not sign a particular offer then there is no short sale contingency for that offer. The banks only work on the contingency. Therefore, there is nothing to submit to the bank, in my layperson opinion.
All offers are between the owner on record and the buyer, not the bank. First and foremost, the bank will not process an offer they process a contract. They do not have the authority or the legal ability to sign an offer to create a contract. Presenting offers to the bank when a contract is submitted is not acting on good faith for the contract presented and could open up both the seller and the seller's brokerage to a lawsuit.
There is a lot of mortgage fraud being committed with short sales. I do not beleive not presenting all offers to the bank is committing fraud.
We are in interesting times... the fallout will be interesting when the dust settles.
I was thinking about this today. This is similar to WF trying to force me to sign a listing agreement addendum stating I have a fiduciary responsibility to present all OFFERS to them????!!!! Uhhhh...no, my duty is to my homeowner and you can threaten to pursue me criminally but you have NO basis to if I don't present a higher offer. What do you plan on doing .. sue me for the difference between the first and second contract? Push off any foreclosures to make sure ALL offers get in?? No, this is the MOST RIDICULOUS thing I've seen. On what grounds does the FBI have to force agents to present all offers to lender who DON'T WANT THEM?!?!
As far as I know, there are no laws that state I have to present all offers. This is another lender's way to try to confus us agents. The lenders are trying to force us to be held accountable for THEIR MISTAKES. NO THANK YOU.
Actually I think there is confusion due to use of terminology. I believe NY has offers, and then contracts. Most states an offer is a written purchase and sale agreement which then becomes an executed contract once all parties sign. Those documents are one and the same, at least here on the west coast.
In NYC, my understanding is that they have offers which aren't accepted in a purchase and sale kind of way are different than their contracts. Honestly, I don't understand the difference but they are two separate documents. I think this release is really specific to NYC real estate because they just do things differently there.
Just to clarify, I don't think in NYC that they send contracts to the bank. I think they only send offers because of the way they do things there using attorneys in their transactions.
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