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My house is soon to foreclose, and the bank has agreed to a final short sale price of 165k (they state that they won't go any lower, would rather foreclose.) I owe 269k on the 1st loan and 66k on a second loan. The second bank has agreed to take 12k.
I started a short sale listing in April, and my agent has yet to find significant buying interest. My house is in Palmdale, CA., one of the worst hit RE markets around. Some areas look like ghost towns, and For Sale signs might as well be mandatory front yard features. So I don't blame him, but then again I need to sell this house at any cost before the inevitable foreclosure- any day now to my understanding.
A RE investment company contacted me recently over the phone via trustee sale records. They apparently liked the price at 165k, among other factors like the good neighborhood, quality of house, etc. They then sent one of their reps over to appraise the house a few days after the initial call. After taking measurements, pics, and notes he went out to his car to do some work on his phone and laptop, and asked me to stick around.
Maybe an hour later he knocked on my door with the good news- they want your house, and here's the purchase agreement. Congrats!
To say the least I was shocked. Here my realtor has presumably been working for some 6 months to sell the place, and along comes a RE investment company willing to buy it within a few days of assessment.
So great I think- the monkey off my back, I avoid foreclosure, saving to some extent my credit along with a huge tax liability. And, if I wanted to stay in the home, they would consider leasing back the property to me, stating they hold new purchases for at least six months due to tax concerns, but would draw up a lease contract if I wanted to stay longer.
One caveat however- my listing agent had to go away. The reason being, in the investments co's experience, realtors inevitably screw up the closing, mainly because they lack experience in dealing with distressed properties, therefore unable to effectively work with difficult banks and other matters. Our investors, the rep explained, have been in the RE market since 1962, and have been dealing with short sales since they began in 1991, and through their experience and the experience of their attorneys, they can expedite what is usually a hassle-prone short sale closing.
When I protested, the rep said well fine, just pay your realtor his 2% out of your own pocket, but he will not be a part of this closing. You will need to send him a note saying his services are no longer needed, and not to worry- check RE laws that state a seller can terminate his realtors contract at anytime in a distressed property transaction. Apparently this law is in place to help distressed sellers who might have the bank drop a 3 day vacate notice on them at anytime, thus avoiding an under-performing realtor from holding up a sale.
Another thing to point out- I am worried about the 2nd loan and the 12k I cannot at this time pay. The rep stated that the investors attorneys would help me negotiate the 2nd, but with no guarantees, though it's in their best interest to help me with this because the 2nd could hold up the close of escrow.
Is everything I'm hearing here true?? is it in my best interest to take this sale right now? I don't seem to have any other alternative.
More than likely, your listing agreement with your agent/broker says that you cannot sell the property on your own during the listing period. And then, if you terminate the listing, there is also something that says if you sell it to someone who viewed the home within the listing period, you still owe a commission.
What the investor is telling you is crap. The lenders typically approve short sales with an amount that includes closing costs. The closing costs include the agent's commission. The investor knows this and he's trying to collect the commission by having his agent swoop in and collect.
What is your current list price? How are you not getting any offers if you're listing around $181k the amount the lenders are willing to accept?
My house is soon to foreclose, and the bank has agreed to a final short sale price of 165k (they state that they won't go any lower, would rather foreclose.) I owe 269k on the 1st loan and 66k on a second loan. The second bank has agreed to take 12k.
I started a short sale listing in April, and my agent has yet to find significant buying interest. My house is in Palmdale, CA., one of the worst hit RE markets around. Some areas look like ghost towns, and For Sale signs might as well be mandatory front yard features. So I don't blame him, but then again I need to sell this house at any cost before the inevitable foreclosure- any day now to my understanding.
A RE investment company contacted me recently over the phone via trustee sale records. They apparently liked the price at 165k, among other factors like the good neighborhood, quality of house, etc. They then sent one of their reps over to appraise the house a few days after the initial call. After taking measurements, pics, and notes he went out to his car to do some work on his phone and laptop, and asked me to stick around.
Maybe an hour later he knocked on my door with the good news- they want your house, and here's the purchase agreement. Congrats!
To say the least I was shocked. Here my realtor has presumably been working for some 6 months to sell the place, and along comes a RE investment company willing to buy it within a few days of assessment.
So great I think- the monkey off my back, I avoid foreclosure, saving to some extent my credit along with a huge tax liability. And, if I wanted to stay in the home, they would consider leasing back the property to me, stating they hold new purchases for at least six months due to tax concerns, but would draw up a lease contract if I wanted to stay longer.
One caveat however- my listing agent had to go away. The reason being, in the investments co's experience, realtors inevitably screw up the closing, mainly because they lack experience in dealing with distressed properties, therefore unable to effectively work with difficult banks and other matters. Our investors, the rep explained, have been in the RE market since 1962, and have been dealing with short sales since they began in 1991, and through their experience and the experience of their attorneys, they can expedite what is usually a hassle-prone short sale closing.
When I protested, the rep said well fine, just pay your realtor his 2% out of your own pocket, but he will not be a part of this closing. You will need to send him a note saying his services are no longer needed, and not to worry- check RE laws that state a seller can terminate his realtors contract at anytime in a distressed property transaction. Apparently this law is in place to help distressed sellers who might have the bank drop a 3 day vacate notice on them at anytime, thus avoiding an under-performing realtor from holding up a sale.
Another thing to point out- I am worried about the 2nd loan and the 12k I cannot at this time pay. The rep stated that the investors attorneys would help me negotiate the 2nd, but with no guarantees, though it's in their best interest to help me with this because the 2nd could hold up the close of escrow.
Is everything I'm hearing here true?? is it in my best interest to take this sale right now? I don't seem to have any other alternative.
Not saying the listing agents are 100% of the time necessary to complete a deal but this sounds like a scam to me...... Why would the investor care about the realtor's involvment he's not paying him? Have you done your homework on this investment company?
My Realtor has the listing at 168k- 3k over the agreed short sale price of the 1st lender. Who knows what will become of the second lenders 12k if I cant pay- might it hold up the buyers ability to close escrow?
The investment company seems legit, I didn't find anything negative about them. Most info I found was on blockshopper, showing them as the buyer and seller in multiple transactions over many years.
Apparently they don't use RE agents at all. And your right, the seller pays and agents comm. not the buyer, so why would they care? Their answer to this was that Realtors in some way end up screwing up the closing, prolonging the escrow or whatever else. The rep couldn't explain just how, it was beyond him as a junior associate.
Possibly a non-agent could answer this one, or not knocking on agents just please answer in a non-biased way.
And what about the reps statement that agents can be terminated by the sellers at a moments notice in distressed property transactions? Any RE legal scholars to answer this one? Maybe its a CA only law?
To test out the legitimacy of this I suggest a few magic words...
Can you say "Califonia Attoney General"? I bet yiou can. Try it. Not with this "jr associate for whom explanation are too difficult" ( like some unfrozen caveman lawyer...) but the folks on the Corporate Contacts page of these jokers required state / federal filings. Being around for 40 years is nothing in my book unless they have no fear of the LAW!
If they do not get all "humina humina hold onthere fella" then MAYBE you move forward. Even if they bog dogs do not break a sweat whenyou ca
L em up ans say " well somethings about your business practices stick me as odd so I called the AG and some o e from the Consumer Fraud division wants to review amfew points with me". Lots of guys are professional liars. Anything they or put i writing needs to by run by your own ruthless attorney. If you go into a shark tsnk with bait tspped to your crotch do not be surprised wje you come our wirh alow cost gende chamge... Do not let these jokers say rher is a time limit on your offfer. Have you ever not heard a car salesmen say " i can only make this deal tonught"? If you have a legitimate offer no lender is going to move forward with a foreclosure. They would much rather let your short sale go forward...
That $12k second ought to be seriously hammered out too. I would not trust the jokes wih drove by jr associate and cell phone any farther than I could drop kick him, but if his bosses are intent on getting your
Ace it seems to me they ought be able to find a way squeak up rehire deal sp you havemsomethi got offer the holder of the second. Damned right THAT will do a lot more to screw up your close gmthsn any meddlesome real estate agent.
I had trouble reading the last post, though thank you for helping. From what I could translate, the helpful points were to make sure it is clear as to what will happen with the 2nd loan, and that some people are liars. Also I think you misunderstood me when I said the rep was a junior associate- he never stated he was a lawyer, that term was meant to convey his bottom of the ladder newbie position with the RE investment group. To his credit, he stated I could have any questions answered and all things explained by principals with the company, and that I could be in direct touch with their attorneys regarding the second loan.
look- here's the bottom line- this buyer is the first buyer to make a real offer in 6 months of listing! And the bank will foreclose any day- they have all the right too and its been happening left and right here in Palmdale. WHY SHOULD I WAIT AROUND FOR MY REALTOR WHILE HE FIGHTS AN UPHILL BATTLE? I just don't see what is wrong with this sale. As long as I can get this foresaken property out of my name via a short sale, I'm willing to do what it takes.
That said I don't want to do anything illegal, so would someone please refer to the thread title question of whether or not I can legally let my agent go? All due respect, he has tons of other listings like these, and has had his 6 months so I'm done. Just what could go wrong with a sale to these investors?? The worst I can see is that they fail to help me with my second loan, and so its on me to try to close that out over time. Or must it be handled during the sale, therefore forcing the buyer to deal with it if they want the property?
My house is soon to foreclose, and the bank has agreed to a final short sale price of 165k (they state that they won't go any lower, would rather foreclose.) I owe 269k on the 1st loan and 66k on a second loan. The second bank has agreed to take 12k.
I started a short sale listing in April, and my agent has yet to find significant buying interest. My house is in Palmdale, CA., one of the worst hit RE markets around. Some areas look like ghost towns, and For Sale signs might as well be mandatory front yard features. So I don't blame him, but then again I need to sell this house at any cost before the inevitable foreclosure- any day now to my understanding.
A RE investment company contacted me recently over the phone via trustee sale records. They apparently liked the price at 165k, among other factors like the good neighborhood, quality of house, etc. They then sent one of their reps over to appraise the house a few days after the initial call. After taking measurements, pics, and notes he went out to his car to do some work on his phone and laptop, and asked me to stick around.
Maybe an hour later he knocked on my door with the good news- they want your house, and here's the purchase agreement. Congrats!
To say the least I was shocked. Here my realtor has presumably been working for some 6 months to sell the place, and along comes a RE investment company willing to buy it within a few days of assessment.
So great I think- the monkey off my back, I avoid foreclosure, saving to some extent my credit along with a huge tax liability. And, if I wanted to stay in the home, they would consider leasing back the property to me, stating they hold new purchases for at least six months due to tax concerns, but would draw up a lease contract if I wanted to stay longer.
One caveat however- my listing agent had to go away. The reason being, in the investments co's experience, realtors inevitably screw up the closing, mainly because they lack experience in dealing with distressed properties, therefore unable to effectively work with difficult banks and other matters. Our investors, the rep explained, have been in the RE market since 1962, and have been dealing with short sales since they began in 1991, and through their experience and the experience of their attorneys, they can expedite what is usually a hassle-prone short sale closing.
When I protested, the rep said well fine, just pay your realtor his 2% out of your own pocket, but he will not be a part of this closing. You will need to send him a note saying his services are no longer needed, and not to worry- check RE laws that state a seller can terminate his realtors contract at anytime in a distressed property transaction. Apparently this law is in place to help distressed sellers who might have the bank drop a 3 day vacate notice on them at anytime, thus avoiding an under-performing realtor from holding up a sale.
Another thing to point out- I am worried about the 2nd loan and the 12k I cannot at this time pay. The rep stated that the investors attorneys would help me negotiate the 2nd, but with no guarantees, though it's in their best interest to help me with this because the 2nd could hold up the close of escrow.
Is everything I'm hearing here true?? is it in my best interest to take this sale right now? I don't seem to have any other alternative.
In other words...
Your real estate agent advertised & marketed your house for sale.
An "investment company" saw the advertisement - whether in the form of an MLS listing, a sign in the yard, an ad in the newspaper, a listing on Realtor.com, photos on the agents website, whatever - and approached you directly, instead of through the obvious advertised method, which would be to contact the agent. That "investment company" then made you an offer which was pretty darned close to the listed price. And as one of the conditions of that purchase, the "investment company" demands that you fire the only professional representation you have, the only person in this entire transaction who knows what he is doing and is LEGALLY OBLIGATED to look out for your interests. You want to know if it's legal for you to capitulate to his demand and fire your agent, who has done the job he was hired to do.
First, even if it's legal, why would yo want to? So you can take the first offer made by this slickster who has no reason to want you to be professionally represented? So you can trust the guy who stands to make more money by convincing you to do what he wants? So you can cave to the first offer made by this "investment company? Doesn't make much sense to me.
A few things to consider;
First, short sales didn't "start in 1991". A short sale has always been a possibility, if one could convince their lender to take an amount less than the full debt. The ridiculousness of this "investment company" trying to convince you they were somehow around at the birth of the short sale only points to their underhandness.
Second, the offhanded promise to "do what they can but with no guarantees" means that they will do nothing for you. Unless you get a commitment from them in writing, their offer to help is meaningless.
Third, they clearly want yroru property at the proce of $165k. This being real estate, and that being a professional investor, do you really think they would make their very best offer on the first attempt? Why would you not negotiate with them for the higher price? For that matter, why does it concern the buyer at all what happens to the money that they pay for the house? Their only concern shouyld be what it will cost them. It appears to me that right now you are $3,000 apart. Have your real estate agent do the job he was hired to do; sell your house.
By the way, yoru contract probably includes a clause - the overwhelming majority of listing contracts do - that protects your agent, and guarantees his being paid, in the event anyone who saw yoru property while it was listed by him purchases it within a specific period of time, usually at least 30 days, and often as many as 90, after the termination or cancelation of the agreement.
Remember; this "investment company" has no interest in hel;ping or protecting you. They want to purchase yrou house for the lowest price possible. All they are is a buyer. Why would you, or ANYONE, be taking advice from the person whose wants are diametrically opposed to yours?
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To test out the legitimacy of this I suggest a few magic words...
