Buying Wholesale
How has people purchased a home in the past wholesale(equity or short sale) in the past if there is a realtor involved. We know the house is being foreclosed upon but drove by the property and there is a realtors sign in the front yard.
I don't think the realtor would be able let us talk to the seller about their situation but, how do you guys think I should approach this??[ Edited by joel on Date 03/24/2002 ]
I don't know how much research you have done on the property or the debt being foreclosed... but... the easiest thing to do is call up the Realtor and tell them you understand the property is in foreclosure and ask them if they have received any purchase offers on the property, or if the owner is going to lose it. Chances are this is the first they have heard about the default.
You may want to tell them you might be able to help them salvage some, if not all, of the Sellers equity, but you will need their help. This is a good time to tell them you don't want to waste their time or yours... and you will not chisel them on their commission. Now here is where you have a choice. You can either structure an offer in the dark to get the negotiations started... or... have the Realtor either gather as much financial information as possible or allow you to go with them to meet with the Sellers where you can gather any necessary financial information.
Either way, picking up the phone and calling the Realtor is not a bad way to start. Remember, the Realtor is under a duty to aid the Seller in selling their house. If they allow a foreclosure to occur without presenting all offers regardless of price or terms, they may be negligent in their responsibilities. You might want to remind them of some California case where the Realtor was sued and held liable for not presenting all offers because they were thinking for the Sellers instead of representing the Sellers best interest, resulting in the loss of the property and any equity. You wouldn't want to see them make the same mistake.
Best of Real Estate Success!
Scott Britton
Scott, GREAT point to make about the realtor's obligation!! Thanks
For Scott
Scott, In Ca. I believe a broker who has a property listed that is in foreclosure and owner occupied cannot act as a dual agent unless he is bonded as a foreclosure consultant.
Now, if I am an investor without a licence, do I make arrangements with the seller to negotiate a sale with him only. (Assuming that I do not want to be represented by a Buyer's broker)
If I get permission from the listing broker to negotiate my own deal with the seller then how is the listing broker protected for a commission and against liability of being the listing agent in case of time running out for the owner in foreclosure?
Any suggestions on how to negotiate with an owner in foreclosure who already has his property listed?
Thanks for any advice
Justin (I will e-mail my real name if you want it)
the person the broker is repersenting is the seller, not the buyer. If you call the broker about the property, you are the customer and he is not representing you, he is representing the seller.
As far as arrangements go, it will depend on the type of listing contract that the broker and seller have. If its exclusive, exclusive seller or net. The listing agreement type will define who can sell it and who can get a commission. My best advice is to talk to the broker, believe me he wants to sell worst than anybody.
[quote]
On 2002-04-27 09:24, justin wrote:
For Scott
Scott, In Ca. I believe a broker who has a property listed that is in foreclosure and owner occupied cannot act as a dual agent unless he is bonded as a foreclosure consultant.
Now, if I am an investor without a licence, do I make arrangements with the seller to negotiate a sale with him only. (Assuming that I do not want to be represented by a Buyer's broker)
If I get permission from the listing broker to negotiate my own deal with the seller then how is the listing broker protected for a commission and against liability of being the listing agent in case of time running out for the owner in foreclosure?
Any suggestions on how to negotiate with an owner in foreclosure who already has his property listed?
Thanks for any advice
Justin (I will e-mail my real name if you want it)
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