Please help with short sale problem involving realtors!

Foreclosures, Short Sales, Tax Foreclosures
1

Hi everyone!

I have a question and hope someone can help me out.

I recently received my NJ real estate license and took some pre-foreclosure listings. An investor approached me and said he is interested in working out a short sale with the lender on these homes, but he wants me to continue to market these homes for an end buyer.

He also says he has another home where is going to start the short sale process on and wants me to get the listing from the owners so that another realtor or I can find him an end buyer. He says this is all legal as long as everything is disclosed to everyone.

Another agent says he does this all the time, but it’s tough to find a realtor or buyer to go along with it while another agent tells me that this is all illegal and that I am risking losing my license.

Can this actually be done legally? I thought the other realtor and/or buyer would be making an offer based on the actual listing and not as an end buyer.

Please help me as I don’t want to risk my license seeing that I just recently got it a few months ago.

Thanks for any help…Sean!

2

I am a licensed broker and a short sale investor. I do business primarily in Mass and CT. In my states I had to figue out what disclosures I needed in order to keep me compliant. You need to check your own state licensing regulations to see what you can and cannot do and what disclosures are required.

Also, make sure you do your homework so you are fluent in the short sale process and the available exit strategies. This is important since you won’t know if you are being compliant as a realtor unless you understand what the process is and where you fit into it.