good evening everyone.
there’s a home facing foreclosure and the sale is in three weeks. it’s listed with an agent right now. i’m thinking of coming in with a lowball offer.
how should i structure this if i want to assign the contract to another buyer? is it pretty much the same way as if there was no realtor involved? i usually target homes which are not listed, but why not give this a shot?
If the home is truely in preforeclosure status, do a short sale with the lender and include the realtors commission on the preliminary HUD-1 when you submit the Short sale package.
there is alot of equity in the home.
the judgement is for around $100k and its listed for $310k.
ryanpal - if there is so much equity in the house, why the owner is not able to sell it and avoid foreclosure? I would double check the numbers. Is there a second?
j1dias,
there could be many reasons why.
no there is not a 2nd mortgage.
regardless of equity…i’m trying to find out how creative investors handle homes which are facing foreclosure and are listed.
If the property is listed, you can’t cut out the real estate agent? Is this what you are asking to do?
possibly that or how about assigning contracts etc.? does that pose any problem since the realtor is involved?
ryanpal - I believe you missed my earlier point - it is true that there are many reasons why some one is having difficult selling his house even when they have a lot of equity. No disputes there… I guess the point that I was trying to make is that you need to find out those reasons. Depending on the reasons, it may or may not make sense for you to get involved.
And I am not trying to pick on you, but I don’t understand when you say “regardless of equity”. Your original question was “how should you structure this…”. The answer to that question depends on the two items above (1) the reasons why the homeonwer is having difficult selling the house; and (2) how much equity is in the house.
Hope this makes sense… Good luck!
j1dias,
i was trying to explain that my biggest concern would be how would structuring this deal be different since a realtor involved (hence the “regardless of equity” comment).
i’m all about trying to dig out problems which caused a homeowner to enter into foreclosure. i just didn’t want that to be the scope of the thread.
perhaps i should have left the example out and just did a more general post.
i do appreciate your posts ;]
ryan
Ahhhhh… Now I get it… sorry! :O)
I don’t think it would be ethical to bypass the realtor. I would do the deal the same way you would if there was no realtor. And because you are not an agent, you don’t even need to go through the realtor, unless the seller asks you to.
So in this case I would approach the seller with your offer and see what he does/says. Depending on the contract he has with the realtor he may or may not be liable to pay a commission to him. But this is between the seller and the realtor.
I hope I haven’t missed the boat again with this answer… :O)
The exclusive listing agreement the seller has with the real estate agent says the seller will still owe a sales commission even if the seller finds his own buyer.
Dave - you are assuming there is an exclusive listing agreement between seller and the agent. This may not be true… :O)
ryanpal - however Dave is probably right… there is a very high likelihood that the agent has an exclusive listing agreement with the agent and as a result he will owe the commission. And even if he doesn’t have an exclusive agreement, if you found the seller through the agent he has earned his commission… But in the end of the day, this is the buyer’s problem. Not yours… :O)
ok that’s more of what i was looking for.
so you think i could approach the homeowner directly w/out talking to an agent? is there any problem with this?
i’m not afraid to do so, i would just like to get the info straight before i take course of action.
ryan
Ryanpal - you are not a licensed agent. So you can approach the owner directly. He will either negotiate with you directly or ask you to go through his agent. If you were a licensed agent you would need to go through the listing agent…
Good luck.
j1dias,
thanks for your input. :biggrin
ryan
The closer to sale date the better chance you have. If you give the realtor to much time with your offer then you could end up loose it to a compettong bid.
Mike