If You're Not A Short-Sale Pro, Don't Touch This One....
Ok, hope this won't be too confusing.....but still new at this......if I've enlisted another investor/broker to short sale a property that i have, would it still be ok to continue to market the property for sale?......i mean with the ads in the paper and the fsbo signs in the yard?......since the investor/broker is continually telling me that there is no guarantee that they will be successful in the shortsale, wouldn't it be in my best interest to continue with my selling efforts since the foreclosure date has been postponed for 30 days?........i need all the help i can get on this one.....not sure what to do.
Also, HOA has sent to their attorney the outstanding balance on this same property......the amount in default is a little over $600. Should I make the investor/broker who's working on the short sale aware of this amount as well?........or is it a non-issue in regards to the short-sale?.......please advise and thanks in advance.
RealEstateBrain,
First - I am assuming that the investor is also a real estate broker. If this is the case, did you sign an exclusive listing agreement? Does he get paid regardless of whether or not he is the procuring cause? If yes, then your sales options are limited. If you have a purchase and sale agreement only, then you are bound by that agreement, and will be required to perform as the seller.
In absence of these contracts, you should continue marketing your property. Especially if there is no purchase and sale agreement. This contract is generally required for any short sales, and if the investor is experienced he should know that.
The most important thing is to keep the lines of communication with your investor open. If your investor is planning on flipping the property, he might appreciate your efforts in finding a buyer. If the buyer you find is willing to pay full price, you have your choice of a buyer for your investor if he is successful, or a buyer for yourself if he is not.
Most importantly, understand that if your investor is successful, and makes a boatload of money you have not lost money, you are out of your situation which is your priority.
I hope this makes sense to you. I was brainstorming while I was writing.[ Edited by bnorton on Date 09/07/2004 ]
Bnorton, no, there is no exclusive listing agreement, but there is a purchase and sale agreement that the other investor/broker had my original seller (i took the property sub-to) to sign......I really have no contracts with this investor/broker, but he did mention to me that if they were able to short-sale the property (since I've never done a short sale) i would get 1% of the sales price........do i need to have something in writing with this investor/broker?.......he actually stepped in to help me out of a situation, but like i said, just wondering since there are no guarantees in the short sale, if i should continue on my mission of selling the house (even if there is a purchase and sale agreement that's been sent over to the bank, which was only done to stall the foreclosure sale date)...........
Also, since there is no contract between myself and this other investor/broker, nothing in writing, should i retain some control over this property because he is asking for a key and he is also asking for direct contact with my original sellers.....just wondering if i should hand over this information or not until the deal is a done deal?......please help me in this.......
Generally, marketing a property that is in the SS process, is OK, if the BPO has already been performed. The BPO person will see the FSBO sign and probably call, or the BPO person will see the MLS sign and look up the listing.
Brenda
Great Point Brenda! I always suggest marketing the property after the BPO as well. I had a situation recently where I became pretty cordial with my loss mititgations rep and he told me what they really did not care if I marketed the property as long as I met thier net amount.
Maybe I am missing something, but, did the lender agree to accept a short sale?
That would be my first question. If the bank did not agree, that what is the point of doing anything else. But then again, maybe I missed it.
first off what is BPO?.....secondly, reinatalie, the point would be that IF the lender DOES NOT accept the short sale, during the same time we could be actively trying to sell it..........hope that makes sense, and thanks to all of you for your expertise, advice, etc.
Great point Brenda.
Alegrier is right. The loss mit reps know what is going on. But at the same time, why give them a stronger bargaining position.
Actually, my biggest concern with the marketing of the property in this case is the fact that RealEstatebrain has not made it clear to me that he has ownership interest. Without that interest, he has no business marketing the property. The second concern is that he needs to make sure his actions are consistent with his investor's exit strategy.
reinatalie, As far as marketing the property for sale is concerned, you need to market it as soon as possible if your exit strategy is to flip it to someone else. If you wait until the SS is approved, then you must take ownership of the property for who knows how long. If you have your buyer already lined up, then you can do a double close, and not have to carry the property at all.
Ok, then I am completely confused. Short sale implies that there is no equity in the property, else why would the lender do a short sale. Why would someone try to sell a property where there is no equity??? How would one make money?
RealEstateBrain has interest in the property because RealEstateBrain took the property sub-to......... :-o
I would suggest for RealEstateBrain to go back and read some more books, then he would not be talking in third person.
Reinatalie, I suggest you keep your negative comments to yourself.....thank you........"RealEstateBrain" has read many books, and continually reads, i don't care how many books you read, this still doesn't eliminate the need to ask questions sometimes......and to bnorton (i think i'm spelling that correctly), thank you very much for all your help!
You are welcome RealEstatebrain. Please let me know how this turns out for you. Good luck.