Hi
Been working on a short sale since January ( yeah, I know) but both the 1st and 2nd mortgages wouldn’t talk to me for a long time. then all of a sudden, the first came down from $359K to $255K. and the second is $94k and everything seemed fine for a short sale there, except that when the banks were missing in action, the seller panicked and called in the Nightmare realtor. She negotiated with the 2nd before the first and now the 2nd won’t talkk to me because Im just the “buyer” and she wants to work with the realtor or seller. I have a tight deal with 1st mortgage and he hates realtor too.
Before I have to hire a hit man to take care of her, what can I do when the realtor has a buyer for the deal and both of us are bucking for a short sale? ( I know it was a rookie mistake to not take the property into a land trust in January, but I was green)
I even told her I would buy the property and sell to her client, but she wants to just control everything and wants me to send her my contract, etc.
I did make an offer to the 2nd for $30k but havent heard. Property worth $400k mint condition, new house, never lived in.
HELP, I don’t want to have to call Guido on this one! >:(
From what I’ve been reading and understanding, the realtor will get her commission no matter what and it does not affect your short sale at all or the offer amount. The bank pays her the commission. The realtor could be your ally because guess who is now the “professional” in the deal. It may be a blessing in disguise.
Oh I see your point. I didn’t include a realtor’s commission on the HUD because I was not dealing with a realtor at all. If the realtor is getting a commission from the 2nd mortgage on the deal, why wouldn’t she want to work more cooperatively with me. She will probably loose the other buyer because of the time this is taking and she is not backing off.
Will the mortgage company pay her even though I was in the deal long before she was and she didn’t write up my contract or even know me?
I would rather my realtor-friend get a commission if anyone…
Im all for everyone getting along in these deals, not just one sided.
Thanks for the imput!
Hi - I’m confused now. Are you saying the realtor has another buyer and is now into YOUR deal? If so, you should get your own realtor to make your offers. I thought you meant the realtor was wanting to represent you.
I would imagine the banks will look at all offers and pick the most attractive one for them or refuse them all.
Why not (with the cooperation of the seller) have the 1st contact the 2nd? The 1st can advise the 2nd of their intent to foreclose in the event of an unsatisfactory workout/short sale. When the 2nd realizes that they are probably going to get zero unless they take your offer, that 30k might start to look right nice.
Who brought in the realtor into the deal?
What bank is this?
If there was no realtor to begin with and the bank wanted one as
a part of the SS deal, ask them the next time who pays for the
realtor and it is going to cost them extra, since you are the buyer
and the property is not listed and the seller does not want a
realtor.
I removed the realtor requirment of one such bank just today.
Does not make sense for them to lose their Net.
Remember, it is the Net numbers that make sense to the bank.
Tossing in a realtor just increases the cost basis.
I had a realtor ask 3% for a pocket listing. It just ticked me off.
3% for doing nothing. I would rather give it to the family that has
lost everything.
-Krish
In a short sale, a bank or mort. co. knows that if a realtor is involved, they will pay them. The buyer doesn’t pay for it. Its an expense to the bank. Also, the bank does get back money if the loan is insured so those numbers are worked. Its a matter if the numbers work against an REO whether a bank will SS or not.
I think maybe this realtor brought another offer into the deal from someone else, not this poster - she didn’t just impose herself - at least I don’t think so. We need more clarification.
Both mortgages were taking since JANUARY To move on the short sale. Things were on hold, no info, etc. The 2nd mortgage started garnishing homeowner’s check, hassling, her, etc.
Then all of a sudden they were ready to deal with us. Except that the weekend before in a moment of weakness, the homeowner listed the property with realtor. She then had a buyer. I called the realtor and told her I already had a contract to back off and she said no, she is going to work the deal, etc. and she has done everything to discredit us and make us look like sharks, while she looks like the rock star with her offer.
The 1st mortgage hates her and won’t deal. The 1st mortgage gave us $100k off the loan. We have a closing date friday with the 1st. She has no deal but won’t go away.
We are taking collections for Guido at this point!
we will call the 1st monday and get lawyers involved I guess, but to work this hard for 7 months and have some realtor scoop up the deal is *******
Actually, the person who you should be a little upset with is the homeowner. Apparently, they got some info about listing the house and did - which they probably should have tried to do months ago anyway. If the first goes with you, the second will be out of luck won’t it?? I know there’s a lot of other entities involved that give the okay.
I guess your saying you have a contract is a moot point unless it is totally accepted and signed by the bank - because there can be as many contracts as the bank wants to look at. Making yours the most attractive is the key.
Are you from New York? I ask because my sister (from NY State) uses the same Guido thing. LOL Good luck - I hope you get the house.
Im Italian from Chicago,we have pleanty of Guido’s and Tony’s here that could roll some heads for me.
I just can’t believe the gall of this realtor. I think I am going to report her to someone. . Maybe the Board of Realtors, file a complaint. She has the homeowner all up in arms, etc.
I hope to work it out next week, good learning experience tho. pleanty of rookie mistakes. The homeowner regrets calling the realtor, but not its too late, she is here and making my life miserable.
Simple,
Just ask the homeowner to cancel the contract with the realtor.
Explain to them that this is a relationship issue with the lender.
There is absolutley nothing that can be done by the second if
the first never budges.
Tell them that with the realtor in the deal, the bank has to pay
her the commission and that will cost them more money. They
are heading to a disaster for bringing in a realtor.
Tell them that if all else fails, you can still negotiate a forebearance
or something with the lender until there is more time to sell
the property the traditional way, if the shortsale does not work
to your terms.
Oh, if they drop the contract with her, ensure that the authorization
to speak to the lender is withdrawn as well.
I am waiting to see the day that the MLS is opened up or made
a public fee simple database.
Good luck.
-Krish
I agree with you. The thing is the seller is being swayed by the realtor that she is the high and mighty one and we are the scumbag investors looking to take advantage, etc. I told her to cancel the listing agareement and she said she did, and was going to keep the realtor as a “backup” offer. Then the realtor kept rearing her ugly head and popping up in the deal. I think she is nervous about loosing her buyer. I will just hang in there and take a long time so her buyer goes away. She didn’t cancel the agreement with the realtor because she is nervous no one will work for her then. She is basically playing both sides towards the middle (like my 2 kids do, 
and no one will win. GET THIS: I even called the realtor to say that I have a WIN WIN situation. She lets us buy the house, we then sell to HER buyer and I pay her a 7% commission! She called back 24 hrs later with all these demands about sending her MY contract, and SHE will decide, etc. TOo many demands. I tried but I think she is psychotic at this poiint or has no other deals but this one. I sold 3 wholesale properties in the past 3 days while she massages this deal to death. And when all is said and done she might make 5K on this and I will net over $100k if I get it. Tell me whats better, the scumbag investor who made $20k in the past 2 days and might make $100k on this, or the dummy realtor who MIGHT make $5k next month on this one???
I believe that realtors will be extinct soon and they are trying to get more into forclosures using their 10 dollars words with attorneys, contracts, their high moral grounds, etc. With the internet and Craigs List (where I list my properties and sell in 24 hrs by the way) and fee for listing services, the dinasaur realtors will be a dying breed and they know it. They are siimply gasping for air at this point.
I certainly made some rookie mistakes on this deal, but the bottom line is the 1st mortgage LOVES me and HATES her. I will drag this out until her buyer gets tired of the fight and then I can low ball the 2nd and laugh all the way to the bank.
She was very short sighted and power hungery in this deal.
I learned so much in this and will tie it up better next time.
The point of my post is to say that the wave of the future and the dinasaur realtors do not jive and they will have to evolve or become extinct.
Hi,
Please post the lessons learnt from this difficult deal.
What would you have done right, if you were to do
it all over again.
I am sure we can all cover our tracks based on your
experience.
Good luck
Krish
Did the seller sign your contract to sell you the home subject to the banks approval? does the Realtor know that you have an accepted contract and the seller could be sued for breach of contract. if the above is not true what have you done to negotiate via the Realtor?
Yes, the realtor knew I had a contract, I called her and she refused to back down or go away. Yes, I did make the proposal to sell her the house to her client if she withdraws the offer. She called me back with more demands. Im done with her. Can’t work with her.
I will play it out this week and see what happens. even if I loose the deal, I want to maybe mess up hers for fun this week. This is my new soap opera
Did you contact her broker to discuss “professional ethics”?
Keith
I told the realtor that she is getting in the middle of my ability to finish my contract, etc. and she said that she is not intimidated by me and won’t back down to me and my threats. She could care less. She is moving foward with here buyer regardless. She is really something…I am probably going to report her…who should I report her to? the IL dept of Realtors?
I would start today with her broker…if you get no satisfaction, I’d move up the ‘foodchain’…
Keith
do you have an attorney that can contact the broker of record for the Realtor and advise them of the risk to the seller for Breach of Contract and the interference of their agent can be referenced in the suit?? Most RE agent in todays RE mkt are usually new in the last few yrs. (lack of experience, training and guidance)
I had this same issue on one of my deals and a Realtor tried the same we contacted the agent directly and advised them that the seller was already in contract with us and if they pursed they would be added to our suit… the RE agt was seasoned and knew they were in a losing position…they backed off…
PS: if you download the RE dept complaint form from their website and pre-fill it out with your complaint and then fax that to the broker of record… this should get their attention…
I think you are out of gas … the seller hired the Realtor … and she is doing her job. Your best bet is to work with her. She hasn’t done anything wrong or unethical. She is working for her client - the seller. They have a contract for her to represent the Seller … Do YOU? You don’t have any contract signed by the seller and the bank … so its all fair game until there is a signed contract by the bank. Banks looks at several deals and decide which they want to do. Its not who gets there first.
You lost this one. You learned some lessons. Don’t make the same mistakes again.
And anyone who says the Realtor is a SHARK for making $5000 and YOU are going to make $100,000 ??? who’s the SHARK??? I think the Seller got scared you were taking them for a ride, and they decided to talk to a professional.
You can make a complaint, but I’ve been to RE board reviews and I doubt she has done anything wrong because the Seller hired her to do a job for him. She didn’t just appear randomly. I know I’m not appearing to be on your side, but I think you are wrong. I’m not a Realtor either.