Nightmare On Sunnyside Avenue!!
I got a call two days ago telling me there is a distressed seller (friend of a friend )facing foreclosure on the 14th of this month and that I should contact her. Another friend bought a house from her a week or so ago.
I send my rep over and she indeed wants to sell and she did sign a listing agreement 41 days ago for her "two houses" one has sold the other has not.
Here's where it gets dicey;
There has never been a sign placed in the yard of either property or on the premises despite a looming foreclosure (verified by neighbors).
The MLS listings are reversed showing the sold property as "under contract" and the about to foreclose one as "sold". Thereby removing any competition for the remaining property.
There were 3 HUD 1's given to the seller with different amounts and she is complaining that she didn't get her last 19K. The MLS says it sold for 125K the buyer that bought it says (through my friend) it was for 140K and the listing agent swears it sold for 149K.
My rep shows up and the neighbor (not the listing agent but a "buyers agent" from a different realty tells him she has the property under contract already, I have our legal dept check into it and she is doing a short sale for herself without the seller's knowledge or signed approval. A contract agreement appears dubious as well since the seller claims not to have signed anything since the first listing agreement and hates the realtor neighbor anyways.
I asked the listing agent about the signs etc. and he said it was because "the property moved so fast that they were unable to buy any signs for it (Remax)" however the listing is 41 days old and the property showed under contract for 15 only.
It appears to me that the agents (listing and buying) are in collusion. It appears that they have goofed everything up so they could take the property and make some money while excluding real buyers. The MLS listing showing a sale of 125K shows low value on an identical property next door that is not real.
I had a quick talk with the co-broker and laid it on pretty thick.
Additionally I asked "who set the price?" if it sold that quickly? I could get buyers to line up all day long at 135K not just 125K.
I also informed him that the seller has the right to sign off on paperwork (seller claims listing agent had her sign off on several "blank" forms in February but had no idea what they were and was told they were routine and the agent would help her fill them out. Additionally the seller is unaware that there are tax ramifications for a short sale.
If the listing agent doesn't give back the listing (I provided the seller with a form to cancel their agency agreement) then I will file with the board of realtors a complaint, have an attorney address the specifics, and hold up the foreclosure/short sale with an emergency chapter 13 petition (while notifying the lien holder of the collusion).
I should probably walk but it really got into my craw!
I am having my local rep (I am two states away right now) give her a termination notice to give to the listing agent in the morning and we'll go from there.
This property is a good property in one of the better neighborhoods FMV 160K and I could buy it cash for 130 and satisfy the liens or take it Sub-To and give the owner $$ for equity.
I enjoy the battle occasionally when an injustice is so obvious.
[ Edited by Stockpro99 on Date 04/01/2004 ]
If I am understanding you correctly, this is the most unethical RE behavoir I have ever heard of. I'm glad to hear just how offended your sense of justice is.
Although not nearly as severe, I was once in a similar position. The cliff notes are as follows; A listing broker persuaded an elderly seller to turn down a 535K cash offer from a me and a partner. A couple of months later she sold the property to one of her regular customers for 450K.
We walked away............. and I still regret it.
Stick to your convictions!
Stockpro,I agree that these realtors are treating the client very unethically. Have the client file a termination notice with the broker immediately. Then have her file a complaint immediately with the state real estate commission.
Thanks, that is exactly what I have suggested to the owner.
great advice Michael!