How do you short sale if property is listed with a realtor?

Foreclosures, Short Sales, Tax Foreclosures
1

If the property is already listed with a realtor can you start working with the home owner or are you suppost to negotiate with the realtor first?

2

I had theis exact scenario about 3 months ago, but the only difference is that I was using a buyers agent as well. The listing agent worked the short sale with the bank and a little help from my agent that had more experience doing them. The home had a first and secnd mortgage that added up to right about 100% of ARV. The listing agent ended up getting the bank to settle both loans for about 77% of ARV. The house needs only needed $5k in repairs and we wanted it as a rental, so we took it. It would have not been a good “flip” deal.

3

oh okay, do you know if they worked with the seller first or the realtor

4

I am having the same situation too. I found the house with 6 months behind. but the ower already listed with real estate agent for almost 3 weeks. She agree to deed me the deed and i take over the payment and catchup the back payment. however the monthly payment is higher than market rrent. and the house have little to no equity. and i want to do the short sale

What should i do?

  1. Let the owner withdrawn the listing first?
  2. work with the listing agent?

I need some help…

5
she agree to deed me the deed and i take over the payment and catchup the back payment. however the monthly payment is higher than market rrent. and the house have little to no equity. a

Have you signed a contract with owner? if so, then you are obligated to bring the payments current.

If you did not, you need to convince the HO that the ss is best way to go, they are already behind 6 months

6

HO already want to do a SS. but the thing is: she already listed the property with a real estate agent. I did not have a contract sign with her yet. I would like to know how to deal with the listing agent…

7

I do not actually know how it all went down between the bank, the seller, and the listing agent. My understanding is that the listing agent talked to the bank and informed them that there was no way they were going to be able to sell the house before the auction date unless the bank took less than payoff. Additionally, our offer was in all cash so it was a guaranteed sale. There were other offers on the property using conventional financing that were higher, but they still took ours.

The funny thing is that after all approvals, it still took 50+ days before we actually closed on the property. I believe the lender was Countrywide on both mortgages…

8

You need to get the seller to cancel the agreement with the RE Agent so that you can deal with the bank with no encumberances.

9

I’m interested in a home that goes to auction in 3 weeks. It is listed with a Realtor who insists on communicating with the bank on my behalf. They will not give me contact info so I can pursue this with the bank. She has already told me the banks bottom line, but I don’t know if I believe that. The listing agreement does not expire until after the foreclosure sale. She also wants me to sign an agreement to make payment to her for her commission if the SS is successful.

What do you guys think?

10

If you have access to the HO, then have them give you the notifications so you can talk to the bank. And of course the the authorization to release info. Let the realtor know that if they are not aware already, make them aware the home is in foreclosure. I have heard the following and i dont remember where i heard it ,.please correct me if I am wrong ‘if the realtor obstructs the ss, the HO can go after them.’ NOt being a realtor i cant vouch for that, I would just inform them that their commission will be determined if the bank wants to do a ss with you. If they really want you to sign, then add this to their agreement that whatever eommission the bank decides upon is what they will get. Remember, it sound like this realtor doesnt know anything about ss that we know.
steve

11

as a rule, i dont work with realtors.

12

Everything above is good point on SS with realtors.

I would like to add that banks like Wells and Chase do require you to list it with realtor before they will approve it. They want the offers to come in from licensed realtor who will more likley will not do “bad” to banks.