Hello all,
I’m running into a road block with a GMAC short sale. I’m thinking this is a pretty common road block.
GMAC is requiring a listing contract. The property already has an offer to purchase from an investor. The investor needs to know how to structure a listing agreement so that it can get through GMACS requirement, but does not want anyone to submit offers based on this listing contract. Is that a pocket listing?
How is this done?
Thanks
Hi,
No, they are looking at an actual listing and are seeking an active marketing and advertising campaign by the listing brokerage to seek new offers, and they will order the owner to "Except All / Submit All"!
They evidently are feeling like they should recieve a more retail “Short Sale Offer” rather than the investor offer they recieved which must have offended there expectations!
Basically what there saying is “This offer is rediculious and therefore they want the owner in Distress to list it”!!!
Go to the next property!!!
GR
The owner should list the property. That is a reasonable request. The laws on ownership differ from state to state in regards to who actually owns real estate that is tied to a loan as security, and the laws differ as to how control is assumed when the mortgage is in default. In my state, Ohio, the owner of the property is the resident/landlord that is buying the property. Until the court has actually foreclosed the property, the homeowner can make the decision who they want to “contract” with for the sale of the property. Of course the lender has the final say to approve/disapprove of the short sale. Listing the property just means that there is a licensed agent involved. Again, that is a reasonable request. The lsiting agent is bound to be ethical in the transaction to both sides. That give the lender some confidence in the transaction even though they are not being represented in the transaction by the seller’s agent. For instance, an agent should not short sale a property to a relative of the defaulting owner, knowingly.
Also, keep in mind, whoever is representing the bank in this negotiation at this time… they are just the preliminary contact. Their job is to filter incomplete short sale packages, and once the short sale package is complete, they send it up the ladder. Short sale packages that cannot be made complete, most often do not make it past this stage and get trashed.
All the best,
~Slim~
Thank you for the information
I’ve done quite a few short sales and have always been required to submit a listing agreement with my SS package. Even if you have an offer, they want to know that the property was actively listed and available in the open market.
The owner of the property is the resident/landlord that is buying the property. Until the court has actually foreclosed the property, the homeowner can make the decision who they want to “contract” with for the sale of the property.
In order to obtain a listing contract you need to identify a local real agent. The agent and the seller will prepare a listing contract that will outline the details of the sale of the home. Since there is an existing offer on the table the listing agent does not have to list the home on the MLS, the home would become a pocket listing. A pocket listing is a listing that an agent has an agreement to sell but it is not publicized with other agents. Going about obtaining a listing contract this way would prevent other buyers from submitting an offer.