bird dog

[ljp]

DBS,
Thank you.

What do you think about this?
I found a distressed property. Looked it up and found it was sold at Sheriff Sale about 1 year ago. Found out it was bought at the auction by the Plaintiff ( Which was Fannie Mae)  I called Fannie Mae, and they said they had just turned it over to a Real Estate Broker in my area ( a well know Real Estate Company) Fannie Mae gave me the contract name, so I emailed her.  She said she would get back to me with a listing price. After 1 month, I emailed her again, and she said it was just open THAT Day. An gave me the listing price.  I pass the house daily, and it's been about 37 days, and there is not a For Sale sign on the property.  In her last email, she said she had many people interested in the property.
What do you think is going on?  Do you think she is not putting the sign out for a reason? Do you have any ideas on this?
PS. It still is NOT listed on the MLS.

DBS, Thanks again for answering all the questions on this forum. We really appreciate your time.

[DBS]

First of all, you're welcomed.  I sure don't know everything, but I'll share whatever I know.

If that property you mention was a Fannie Mae property, the owner has a certain amount of time to redeem himself.  Here in Maryland it is 30 days from date of first notice.  So, legally, a sign cannot be put on the property until that time is up.  Another thing to note is that a For Sale sign on any property is not mandatory.  If an owner doesn't want a sign on his house, the agent can't put one on it.  Some people just don't want their neighbors knowing they are selling or they don't want passers-by dropping in.  When Fannie Mae turns the property over to an agent to list, he is given a "lock out" date which means this is the date the house is officially LOCKED and the owner cannot enter again.  THEN, the agent can put it in multiple list and accept offers.  He may never even put a sign on it.  Many people (myself included) go to the courthouse periodically and identify pre-foreclosure houses and keep track of their time frame for my investor clients.  Many times, we approach the seller prior to foreclosure and make them an offer.  Here in Maryland, however, a new law has just recently been passed that precludes anyone from approaching people in pre-foreclosure, therefore, my clients are forced now to track them in multiple list.  I hope I've shed some light on this for you.  There is a lot involved but its worth it if you can get a property this way.  

[Mark-Austin-TX]

==========DAVID===========
you wrote
[Realtor contracts "DO NOT HAVE THIS CLAUSE."]
referring to legal flips..

If I understand you correctly, you are saying you cannot use a state promulgated re-sale contract containing:
 
[...Joe Shmo to sell to... "Jane Smith *Or assignee* " (allowing you to flip/wholesale the property)
-Assignee being the person you sell to, while in escrow.

I'm a Realtor here in Austin and I've used this in several offers..
Your thoughts?

MC

[DBS]

Yes.  If you are going to assign the contract, you shouldn't use the state form.  At least, here in Maryland, we have a "Do not assign" clause in our state form.  I don't use it if someone is going to flip the property.  For investors, I have a contract that is short and sweet with no such clause in it.  It was given to me by a lawyer so I feel confident it is a goo document.

[Roger J]

Actually, DBS, it's pretty easy to adjust the "standard" REALTOR purchase and sell contract for assigning.

First, list your name (or company) with the usual "and/or assigns or nominees,"  in the buyer's spot.

Second, cross out the contract line that says something to the effect, "this contract is not assignable unless both parties agree to it in writing" and initial and date at the cross-out.  The seller must initial and date this change in contract as well.

And now, you have a fully assignable standard contract.

Raj

[DBS]

Raj:

I don't know about your State's laws, but here in Maryland it says on the contract that we cannot edit any of the contract - if we do, we can lose our license.  

[Roger J]

Wow,

That's pretty strict.  Yeah, in NC, I've crossed out several things before.  Purchase price has been crossed out and printed in several times on the same form.

The key point is that BOTH parties have to have initials and dates beside EVERY change in the contract.

I guess I should have added:  "verify your own state laws before attempting."

Thanks, DBS

Raj

[DBS]

Raj:

We can do some of the same things you can - like changing prices with initials, etc. - But we can't cross out or edit entire paragraphs without getting in trouble.  You're right - it all varies state to state.

[Bayarea]

Bird dog, where can I find that contract that you're using?  thanks!

[DBS]

Not sure if it was me (DBS) who you were talking to, but you can get the contract I mention from a realtor.  

[JustAFollower]

About that Barry Grimes guy...  He's good.  Although all of those free reports drive me crazy!  He one of the few though that could convince me.  Essentially he could have summed his 119 pages in a couple of sentences.  Start birddoging for investors and get paid.  I can help, buy my program.  It probably wouldn't be as effective or inviting but... that's basically all he said in all of that.  That whole diary thing in the report was pretty slick.  A little red herring falacy thing going on... If nothing else he's a good writer

[el4realestate]

DBS - I came across your reply below and wanted to ask you a question. I am also in MD. You indicated the following in your message ....

"Here in Maryland, however, a new law has just recently been passed that precludes anyone from approaching people in pre-foreclosure, therefore, my clients are forced now to track them in multiple list. ".

What does "therefore, my clients are forced now to track them in multiple list" mean.  

How do your clients get pre-foreclosure deals?

[DBS]

The new law allows real estate agents to pursue pre-foreclosures and REOs.  Therefore, if you want to pursue these,  an agent will need to do it for you.  From what I understand, the Maryland Association of Realtors had a good lobbyist in Annapolis during the signing of this law who worked to allow agents, who are held to a strict code of ethics, to help people in foreclosure.  

[el4realestate]

Interesting. So the private investor who doesn't want to use an agent is screwed.  

BTW, I have nothing against agents. We have a family friend who has been practicing Real Settlements for 25 years so we were planning on contacting the pre-foreclosures ourselves and then having the settlement company draw up the contract and other necessary paperwork.

[DBS]

Yes, unfortunately, this is the case.  It seems that too many not so nice people were preying on people in pre-foreclosure and foreclosure which makes it bad for everyone.  If agents do that, we can be fined heavily or lose our license all together.  If you have a friend who is an agent, form a partnership with them and work out a reasonable fee.  I'm sure he/she will be glad to work with you.