Potential Short Sale Deal - Client working with Realtor

Hey all,

Quick question:
I have a potential client that responded to one on my NOD mailings who is in the foreclosure process. He wanted me to buy he house before it went to auction which is set for July 2010. Now he has signed over power or attorney to a realtor which is working on a short sale. Is there anything I can do to acquire this client? I want the short sale. The only thing I can think of is to have him discard the contract he has with the realtor (break the link) and have him sign a contract with me allowing me to perform the short sale process with my team. It’s a good deal from what I know at this point and from my calculations could profit around $20,000. Would love to get my first deal here. Should I contact his realtor and ask for status of short sale? The bank has yet to approve and the seller is unsure if the SS package has been submitted.

Any help would be appreciated.

Thanks in advance. If you need more information, let me know.

Chris

Hi Chris,

          Now maybe I am reading wrong but from your post I get the following facts:
  1. Seller (Party in default) has signed a listing agreement with a realtor?
  2. Your stating seller signed a “Power of Attorney” although I don’t understand that; a licensed realtor should not have siezed control of someones property?
  3. I see No Statement as to any potential buyer already in the picture? So a Short Sale offer went in without a buyer?
  4. A realtor is paid by the seller / bank or lender it should not matter to you as you don’t pay the realtor?
  5. If there is No Current Buyer the Short Sale Package should not have been submitted yet as normally a contract to purchase accompanies the Hardship Package?
  6. If there is a listing in place, have your team realtor present an offer to the listing agent and start the process?

Depending on where you are in the country lenders have been requesting a realtor list the property to allow marketing and a chance to catch a Arms Length Buyer that best represents a fair offer for the market. Grab your favorite team agent and give him or her a freebee commission to present the offer, just make sure your buying agent (Your Team) offers to make a contribution from there commission toward your closing costs.

About the agency thing who cares if the bank pays these people a commission, it does not effect your price at all, they either except or reject!

Good Luck,

              GR

Thanks Gold River.

I believe your right. He must have signed a listing agreement with the realtor, not Power of Attorney. Confusion. I’ll get some additional information from the seller and move forward as you suggested. The learning process never stops.

Thanks much and have a great weekend.

Chris

Couldnt he have done poa so he doesnt have to keep going back to the seller with offers for approval for the bank?

or you could ask the seller to sign a blank copy of the sales contract and send a new one to the lender when you have to make another offer. If the seller isn’t making any money it’s not likely that they care what you buy it for as long as you can help them.

In my opinion giving a realtor POA is a conflict of interest. If any legalities were to come up it would raise some eyebrows, a little in the grey area me thinks. I understand why but I’d avoid it. I’m not a lawyer either. Herbster

That’s my opinion too…
But if you’re unsure, make the call and ask…