OK- we are coming close to foreclosing on our property in central florida and a friend recommended we get in touch w/ this agent to help us out w/ a short sale- he has explained how it works and we really feel we have no other option at his point do to our circumstances… here is my question:
The agent asked us to sign his contract (pretty standart) but also wants us to sign the house deed over to a trust in his company’s name. How common is this during a short sale process using an agent? I know there are many laws and regulations w/ the short sale and foreclosure process and would like to spare all the headaches involved… Have you guys deal w/ an agent asking such a thing? Please advise me…
I also had to do a short sale on my home although I wasn’t in the foreclosure process. I dealt with a Real Estate agent. I signed the standard listing forms agreeing to what price to put on the market, but I wasn’t asked to sign a deed over. I continued making payments until the process went through however. Perhaps you can contact your lender and do it yourself (that’s what I did) if you feel uncomfortable with the agent. I’m assuming it’s a Realtor?
It also prevents you from backing away from the deal. If an agent is going to spend the 2-3months that’s required to do a short sale on your house, and then at the time of closing the homeowner decides to stop caring, the deed allows the agent to go on and close the deal, given that he also has a limited power of attorney signed.
I get the deed signed and notarized, because I don’t wanna bother chasing down the homeowner when it comes time to close. I also see no reason for the homeowner to disagree to this, given that a short sale is usually the last and best option.
My question would be, why does the agent get the deed put into a trust of his company?
Yes, there is a justification for an agent to do this. But the thing is if most investors and nearly all agents do not do this, you should search out one who doesn’t. Just because one requires it doesn’t mean this poster has to take it.
It is simply a fact of life and a cost of doing business that Realtors and investors sometimes invest time in a deal only to have it fall through. You deal with that by properly qualifying your client and dealing with them properly during the deal. If you do this most will not back off so there is no need to tie them up against their will to force a deal down their throats.
What if whenever you walked into a shoe store, the salesman took your shoes away so you couldn’t leave unless you bought a new pair? He is protecting himself from spending time with you without a sale right? Shoppers would avoid this store right? In my opinion, by requiring them to give you the deed, you are theoretically protecting yourself but also pushing customers away from your SS store.
In my experience the people who want to back out in the end are those who were tricked into the deal in the beginning and who realize through the process that they are being screwed. If you are doing a legitimate service for someone, you don’t have to force them or tie them up.
Hello,
I’m a Managing Director for a Real Estate Company, former Realtor and Loan Officer, etc. I have to jump in here and tell you that the Realtor should NOT be putting the property in his name. First of all it is a conflict of interests. Next, the Realtor is required to disclose to ALL parties involved if they have an interest in the property. The short sale process is not complicated. If you have not already done so you need to contact the lender and ask to speak to someone in the short sale dept. Once you reach the short sale dept (and they will be busy) request a short sale package often referred to as a hardship package. There is probably an individual already assigned to your account at this stage and that is who you should speak with. What you need is time… what they are looking for is a plan. A plan being an executed contract (contract signed by both parties) to sell the property at an agreed upon price. Which is what im assuming your agent was trying to do in the agents best interest so they can make some money off the short sale of your property. If its your desire to sell the property to the Realtor who is representing you then i suggest you get another agent to represent you in that transaction. In any case you need to identify who your buyer is and get a contract executed to present to the representative in the short sale dept. With an executed contract in hand they will give you more time- usually through the closing date on the contract- so make it 45 days and after the first week of each month which is usually when it will be sold. Review all the documentation youve received from the lender because they are required to let you know exactly the status of the foreclosure process.
Right, the Realtor shouldn’t be putting the property under his name in any circumstance. If it’s an investor doing the short sale for you, then they can put the house under their name.
The OP, greenigirl, seems like a homeowner willing and motivated to avoid foreclosure. If I approached her, I wouldn’t bother getting her to sign the deed b/c I know she’ll work with me, pick up her phone, and be at the closing table when she’s needed.
But, if I meet a homeowner who takes 3 weeks just to get a few documents together, never picks up their phone, is hard to reach, and doesn’t REALLY, REALLY care about their credit… then I’ll do my best to have them sign the deed and allow me to close on the house when the time comes. The homeowners I’m referring to are those that don’t even have the house listed, and think that having good credit isn’t a big deal.
Personally, if I meet a homeowner with the characteristics you describe, I walk. If you don’t trust em and gotta get the deed, they aren’t worth your time.