I wanted to know, when a realtor has a shortsale and you want to get it under control using an option contract and the home is listed under the MLS, when do you take it off the market and then relist it? Im assuming you would need to take it off the market before the BPO is conducted because you want to get the BPO to come in low and if its listed their is a possibility that the BPO agent will use the List price as the BPO value.
This is a very interesting question?
As an experienced professional investor I quite frankly am unsure how some aspiring investors come up with these questions.
First the listing has a “Term” so the seller signed an agreement to list the property for “X” term. This realtor has a broker who is responsible for the listing terms and conditions and want’s the brokerage (company) to make a commission selling this property.
In the state I primarily invest in a foreclosure takes place over 110 days from the notice of default. A short sale usually can not be submitted until after the notice of default. If a realtors listing is for 90 days in my state it only leaves a few days to actually close a deal after the listing expires?
In my state a listing means any agreement made between a buyer and seller constitutes a sale and commission of 6%. Now most realtors would tell me “I am not going to relinquish my listing until my company is paid the commission for the listing” and in most states this requires an escrow for a listed property!
The seller, not you as an investor can take the property off the market depending on the terms and conditions of the listing?
If the lender filed a notice of default making this a foreclosure, they probable already ordered the BPO and since this is listed, the list price is in the MLS system whether the listing is removed or not!
When I do short sales I find properties which are not listed and I am the one to put together the hardship package and negotiate with the lenders!
If you ask me, this is a lawsuit waiting to happen!
GR
The question is interesting, even then I don’t know the answer.