My realtor friend told me that in Illinois, the only way for one to profit off of Short Sales is if you are a licensed realtor getting commission off of selling the property at the discounted price.
She gave me the following an example:
*house with a mortgage of 150, 000
*BPO/appraisal comes back @ 130,000
*Bank discounts it 125,000 (she’d sell if for this and get the commission)
She’s thinking that one can not turn around and sell it for more than the discount price of 125,000 and it be legal especially if you do a double close on the same day and end up selling it to an end buyer for more than 125,00 because the appraisal won’t match.
I know there’s got to be a legal and ethical way and someone on this forum knows the solution. :help
Any one out there doing SS in Illinois? What say you?
If the appraisal is 130, you’d be darn lucky to get 125 for it on the open market. It would have to be in pristine condition in order to find a buyer for it at full market value. So on that example, the only one who is going to a make anything is the agent who gets a commission.
no matter what state you are in there is no law that restricts a person from selling real estate that they own. If you negotiate the short sale, then purchase at your negotiated price you can then sell for whatever you want…or as much as someone will pay anyway.
GooD Luck! :beer
I am in Illinois and have done shorts in Lake County. As in any state, a contract is a contract, and gives you equitable interest in the property.
You can negotiate the contract, and as with ANY CONTRACT real estate or not, your position in that contract can be sold. So if you negotiate a good deal, you can sell your position in that contract to another party.
Many realtors just aren’t well versed. To become a realtor you take 45 hours of classroom study (many of which the instructor just tells you basically what areas to really focus on to pass the test). Once you finish the classroom, you go take a test.
Not everything is covered and you can also get a few things wrong. I can tell you that no question about SHORT SALES was ever on any test or Continuing Education that I have been required to take.
SO it is common for agents not to understand how it all works. Most of the time, they only want to get in on the deal and make money, but hey, isn’t that what we all want!