the Realtor first question of any client is : are you working with another RE agt? then the next question should be have you entered into a sales contract with anyone that is still valid?
On the otherside the bank like you so hopefully they will choose your contract to sell to … i would show the bank you are ready to close with in days not weeks (cash vs loan)
I don’t think RELinda is a realtor (that wasn’t conveyed anywhere) or was she going through a realtor (she didn’t say she was). AND it doesn’t make any difference if there is a contract out there. Unless, its signed by the bank and the Seller - there is no deal. If you know anything about RE (was a Realtor but not now), you can have 10 offers on a property and the seller and/or bank can pick whichever one they want to take. Its not first come, first served in real estate. The bank is the only one who says when they will close - a fast close makes no difference to the bank. If the house is in foreclosure, the bank will decided if it wants to do a SS or just go with the foreclosure. The Bank is in control here.
I have to ask. Will the seller still work with RELinda and put the deed into a land trust? RELinda, as the trustee, would then control the property and either continue with her short sale, wait for the Realtor to finish her short sale, or offer to assign her contract to the Realtor’s buyer. Are there any downsides to this idea?
IMO - If you start clouding the title - I think it will only muddy the deal even more.
what could I do? the attorneys are gettting involved at this point. should I file a lien or something?
maybe I will tell this realtor I will release my interest in the property for $50k
What do you have as “interest” in the property? Do you have a quit claim deed? Do you have a signed contract with the seller - if so on a short sale, it isn’t final until the bank signs and they haven’t. So what monetary interest do you have? Did you give the seller’s any earnest money? Did your attorney say you have some claim? What lien would you put on the property? You can’t just throw a lien on a property for the fun of it. You might have a claim against the Seller - but apparently they don’t have a lot of money so that’s not a great idea. You should do as your attorney suggests I guess whatever that is - it may cost you some money though.
Let’s just put the “macho” talk about Guido to rest as a joke and carry on here. YOU did not convince the seller you were as professional as a realtor, so they called one in. Realtors go to class now to learn how to get short sale listings from investors. Most know their stuff and many will stretch the truth to get the listing. Most banks around here go directly to their reliable realtors for pre-foreclosures and and won’t even deal with investors directly doing short sales, or even just straight buys any more. I really don’t blame them when there are so many dishonest and ignorant investors out there. (Not talking about the poster of this thread, by the way, that’s just the facts in many areas)
I just lost a deal where the seller got a pep talk from a realtor after we agreed on figures, tactics and terms, but with no contract signed, and his house is still on the market as the clock ticks down to his foreclosure. The realtor loses nothing but a little time, but sure isn’t advertising this house much. Should I have had the family sign a contract binding them six ways from Sunday to tie up that deal as the gurus say? NO! An unsure seller invites lawsuits later. After all, when you call yourself an investor and are set up as a business, YOU are the pro. Any judge would rule you “talked the seller into a bad position with your superior knowledge”. Such is life. I DID NOT CONVINCE THE SELLER I WAS PROFESSIONAL ENOUGH TO TAKE CARE OF THE SITUATION LIKE A “PRO” WOULD. Right or wrong, that’s the bottom line. My brag book of happy clients didn’t count enough in that case. The seller may call as his time dwindles, or he may not. I’ve moved on from that one and won’t be able to offer him as much now, the house may not sell for the realtor since they aren’t spending to list properly , so no commission for them and the bank will have to dispose of yet another house using yet another realtor. By the way, you’d be surprised how much money banks spend on returned property even if it just sits there, so even negotiating short sales that are profitable to you isn’t as easy as the gurus tout in the courses. I don’t see that trend ending until foreclosures are up to people’s butts in a year or two.
Moving on, don’t be like a lot of investors and figure you are going to “get around” the realtor. Most realtor contracts are iron clad, and if you did have a sliver of a chance, are the judges in your area pro-investor or pro-realtor? Right doesn’t matter in court as most of you know. You can spend lots of money proving you are right and still not win.
Think why you are pursuing this deal. Are you doing it to look out for the investor, or grab a big profit at all costs? Your mindset WILL show through in your negotiations. Is it worth any more of your time? Is the bank stalling you because they will simply not deal with you? Do you have a relationship with someone there? They don’t “hate” the realtor. Banks only think numbers. They have no emotions in their committees of decisions. They do not want you to cost them money or time. Are you? Think where your time could be better spent at this point.
This may be a drop it and move on thing. The time you spent has allowed the pros you don’t even know about to move in. The figures you mention would draw them in like flies in my county. They are negotiating now with the bank. Some may even have themselves down as an exclusion on the seller’s contract with the realtor and won’t have to pay the realtor if they do the deal. Snarky little stuff that end runs the pros isn’t going to win points and usually doesn’t work. Be careful here! Play nice and professional and make us proud.
Well said Kregan - I agree. 
Thanks for all of the advice. Since complaining about this stupid situation, I since closed 2 wholesale deals for $15k. I probably could have closed a lot more. I am going to put it behind me and look for other good deals.
Let her stick with her realtor. Hope she does the right thing for her. My time is, you are right, spent better somewhere else. plus, I almost got a divorce over this one…
Geeeez! Something just never made any sense throughout RELinda’s rants & she avoided some very direct & specific questions…for instance;
“What do you have as “interest” in the property? Do you have a quit claim deed? Do you have a signed contract with the seller - if so on a short sale, it isn’t final until the bank signs and they haven’t.”
Seems like she’s steamed at not getting her way if you ask me. Resentful of the Real Estate Agent for getting in her way.
After all…any reasonable Agent would have bailed straight-away once they found out there was a [u]signed around contract with the bank/u…if for no other reason…to avoid a law suit.
“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.”
Wishful & erroneous sentiments for one thing. Bitter & rankerous bias for another.
“Simply gasping for air”? I’m having my best year ever!!!
-Infowell
People with always want to hire a professional - its just that simple. They will cry about realtors doing nothing for their commission - but they will hire a realtor because they will be represented and hopefully taken care of through the deal. Its one less headache one has to deal with in marketing and selling a home.
Congrats on that good year!
Maybe do the oldest move in sales. Take it away.
tell them all you are walking away in 48 hrs if you don’t have a done deal.
If you are making 100k in a month or 2 why are you wasting your time.
Thanks cherdwelth!
“They will cry about realtors doing nothing for their commission…”
Seems like everybody on the planet has an opinion doesn’t it? We’re definately an adversarial species!
Anyone who thinks Agents “do nothing for their commission” shows just how little they know about the business. Anyone with this sentiment ought to stay out of real estate investment.
These types have a successful deal or two and suddenly…they’re an expert! I now know where the saying, “a little knowledge is a dangerous thing” came from.
Short Story: I was getting out of my car to appraise an REO some years ago.
Fella across the street had a gutter-n-downspout business he was running out of his garage & side of his house. He was loading his truck with another guy & asked what I was doing.
When I told him I was an appraiser he said, “I’ve been paying PMI for 12 years (12 YEARS!)…how do I get it taken off?”
I told him he’d have to have an appraisal done & submit it to the bank. “Should be no problem after 12 years!”
He got obstinate when I declined to do his appraisal, “I’m sorry…I’ve a handful of regular clients, and I’m always booked several weeks out.”
“That’s alright,” he said nastily, “I’ve got a problem paying someone $400 for 20 minutes work anyway.”
I couldn’t help myself…"I don’t know what’s more foolish…the fact you’ve been paying PMI for 12 years, or the fact you think I make $1,200 an hour and aren’t doing it yourself!
-Infowell
Great story!