Can't List Your Home In Foreclosure??????
I just heard something that blew me away! Don't laugh, this may be something most of you have known for years, but is it true that in some states a homeowner in foreclosure MUST bring the loan current before they can list it with a realtor? That is HUGE!!! In PA you can list and sell a home right up until the dxay the Sheriff sale occurs if there's time. If there really are states where a homeowner is out of options once their loan goes into default, I'd like to know what they are. I'm not afraid to invest out of state, if anyone has any info on this I'd really appreciate it!
Thanks so much to all of you....
I've not ever heard of that... but with the far reaching provisions within the Patriot Act, who knows?
I'd backtrack and ask whoever told you this information to be a bit more specific....
Perhaps what was meant that if a homeowner's mortgage was in foreclosure and the homeowner filed a petition for bankruptcy.... that while in bankruptcy the homeowner would need bankruptcy trustee's permission to enter into a listing contract with a real estate broker.
[addsig]
Well now I'm glad I didn't sign up for HIS REI course! The person who told me that was a self-proclaimed GURU named Robert Barry. I listened to his sales pitch last night and decided I'm doing just fine without him. He said that in California, a homeowner can't list his/her home while the loan is in default.
My eyebrows went up and I looked at my husband - we both were shocked - and thought that it sounded fishy. I'd be curious to find out the basis for his statement.
tmpringle301,
I hope the seminar was free!!
Some folks will do anything to get into your pocket!.
Sounds like we need a place here on TCI to list all the scams we come accross so others dont get burned down the road. That one could be the top of the list.
Thanks for the info on that guy.. I'll make sure I stay away from him and will tell everyone I know about him.
Behind all the hype and smoke and mirror bravado, there is usually an inkling of truth. I know that California has some very proactive legislation regarding residential mortgage foreclosures, and those that seek to "help" the distressed homeowners....
So, I've placed your question with an authority on California forelcosure law.
Stay tuned.
What a load of HOOEY!
The laws in California do not prohibit an owner in default from selling their home (with or without an agent). The laws are there to protect the homeowner and keep predators from taking "unconscionable advantage" of them.
Quote:Liability for Acts of Representative
1695.15. (a) An equity purchaser is liable for all damages resulting from any statement made or act committed by the equity purchaser's representative in any manner connected with the equity purchaser's acquisition of a residence in foreclosure, receipt of any consideration or property from or on behalf of the equity seller, or the performance of any act prohibited by this chapter.
(b) "Representative" for the purposes of this section means a person who in any manner solicits, induces, or causes any property owner to transfer title or solicits any member of the property owner's family or household to induce or cause any property owner to transfer title to the residence in foreclosure to the equity purchaser.
Contract Cannot Limit Liability
1695.16. (a) Any provision of a contract which attempts or purports to limit the liability of the equity purchaser under Section 1695.15 shall be void and shall at the option of the equity seller render the equity purchase contract void. The equity purchaser shall be liable to the equity seller for all damages proximately caused by that provision. Any provision in a contract which attempts or purports to require arbitration of any dispute arising under this chapter shall be void at the option of the equity seller only upon grounds as exist for the revocation of any contract.
(b) This section shall apply to any contract entered into on or after January 1, 1991.
Representative Must Be Licensed and Bonded
1695.17. (a) Any representative, as defined in subdivision (b) of Section 1695.15, deemed to be the agent or employee, or both the agent and the employee of the equity purchaser shall be required to provide both of the following:
(1) Written proof to the equity seller that the representative has a valid current California Real Estate Sales License and that the representative is bonded by an admitted surety insurer in an amount equal to twice the fair market value of the real property which is the subject of the contract.
(2) A statement in writing, under penalty of perjury, that the representative has a valid current California Real Estate Sales License, is bonded by an admitted surety insurer in an amount equal to at least twice the value of the real property which is the subject of the contract and has complied with paragraph (1). The written statement required by this paragraph shall be provided to all parties to the contract prior to the transfer of any interest in the real property which is the subject of the contract.
(b) The failure to comply with subdivision (a) shall at the option of the equity seller render the equity purchase contract void and the equity purchaser shall be liable to the equity seller for all damages proximately caused by the failure to comply.
Clearly, in California, an agent or broker may represent property owners who are in foreclosure provided they behave appropriately.
[ Edited by wannabe21 on Date 06/20/2004 ]
Knowing Ward to be an expert in California (and many other states) foreclosure procedures... I asked Ward Hanigan. This was Ward's answer:
Dave,
As you know, most mult-state carpetbaggers aren't even close to knowing what the local procedures are in the states they're traveling through.
We don't have laws that penalize homeowners because they're in foreclosure. On the contrary, we have some restictive laws (see link below) aimed at protecting homeowners in default from being easy targets to charlatans and scamsters out to make a quick buck.
http://www.****This URL Not allowed****.com/codes.html
[addsig]
When listing a property in foreclosure. I always comply fully with the California requirements. I also do more. I document the transaction fully informing all parties as the offers and counter offers fly back and forth. I will advise as to the present market value and when a lesser amount is taken in view of the need to beat in a foreclosure, I make sure the friendly attorney has tried to postpone sale or taken other action to gain time.
I have worked with persons in BK and obtained permission to sell properties from the Trustees in Bankruptcy. Some have not been cooperative and we have pushed and pushed to obtain their jpermission.
I even effected a sale from soon to be ex wife to husband who she hated, that took right up to the day of published Trustee Sale to finalize. I had her examined on two occasions for weapons. One was a silver plated Derringer interesting piece, a classic sleeve gun.
She was hostile, but at the conclusion of this drawn out scuffle, we all had a drink together and the ex to be wife and hubby even shook hands. No not each others, mine!
All during this negotiation the Predators were circling. Calling both parties trying to insert. It was a ball.
There is a need for the laws. It makes all of us involved really toe the mark. But it is interesting.
Barry's knowledge of modern day transaction is flawed. I would think you could do your own research and come out a bit better. Read the Statutes, boring but informative
Lucius da man in the middle.
Alrightey then! Thank God I didn't actually PAY for that information!!! lol
Thanks to ShortSalePro and those other posts that responded to my question.
I knew I either had a potential goldmine (not likely) or a bunch of "hookey"!
Thanks friends - as always you are very helpful.