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  • #6432
    Avatar of amyhutton
    amyhutton
    Participant

    I couldn’t post this long message here for some reason, so I put it up on the web at http://evergladesequity.com/shortsaletraining/

    Amy

    #32769

    Thank you Amy!

    #32770
    Avatar of corkhorner
    corkhorner
    Participant

    Was it Milton Berle who said “i’ve got a million of them?”

    Amy, you have a prolific mind.

    I enjoy your ideas and thinking.

    I can well imagine what a task it is to weed out the doable SS you encounter.

    In my opinion the SS tsunami is but another symptom of major economic corrections underway driven by an unhealthy condition known as greed.

    It has been proposed by some that ‘greed is good’. I think not. Unless you think the housing mess is ‘good’.

    There is much to be said for ‘the simple life’?

    My statements here are not ‘how to’. I believe each person needs to find the path that works for them?

    Or as the shrimp guy said “simple is as simple does”? [the movie]

    What I still find as a major mystery is how the process of finding and keeping buyer C in the pool without the lender/bank screaming bank fraud. In my view, one either has a ‘buyer’ under contract or you don’t?

    c h

    #32771
    Avatar of bill
    bill
    Participant

    Cork (and all)

    Remember that a Realtor(R) does not have any fiduciary responsibility to a client’s lender. Their loyalty and responsibility is solely to their client. They have no obligation to report anything to any lender which is not germane to he transaction at hand, or directly deleterious to a party’s interests from a legal standpoint.

    There is no regulation, after my offer has been accepted, signed and dated by a seller, that would require an agent to notify the lender of subsequent better offers (even though they might sometimes insinuate that he/she should do so and try to coerce such actions).

    The Fraud comes in when I have a buyer that I know will pay more than I might have to, and I manipulate the bank into accepting a short sale offer so I can turn around and make a profit on the buyer I already had waiting in the wings.

    No, there is no trouble in keeping a retail buyer in the loop after the short sale offer has been accepted, signed and sealed and awaiting lender approval.

    Analogy: You just submitted an accepted offer to a lender and are awaiting word on an approval. I come to you and ask if you have a property available for me. You say, “Not at the moment, but I think I may have an approval coming in on one next week.” Can you see that neither of our actions is fraudulent in any way? And wouldn’t I be willing to sit back and wait to see if you getting the house I want?

    #32772
    Avatar of sstanton
    sstanton
    Member

    Bill,

    Along the lines of your post, here are excerpts of the last letter Montana DRE sent to all agents. While this jest of the letter is about options and shorts sales, it is these points that make it difficult.

    @Bill wrote:

    Remember that a Realtor(R) does not have any fiduciary responsibility to a client’s lender.

    @Montana DRE wrote:

    Buyer #1 (in this letter the optionee) may have lured the licensees into an unlawful situation because, by helping buyer #1 get more money than he paid to the bank on a short sale, the licensees may have assisted in a bank fraud. In other words, the bank was unwittenly induced to accept less money than they might actually gotten had they known that there was another buyer at that time who was willing to pay more than buyer #1

    But even if it is not bank fraud, it is at least unprofessional conduct for a rel estate licensee to represent to any lender, guaranteeing angecy, or other interested party, either orally or through the preparation of false documents, an amount other than the true and actual sale price of the real estate or terms differing from these actulaly agree upnon. ARM 24.210.641(5)(q). As the listing agent in the above example, aren’t you advertising a property in the MLS system at a price other than the true and actual sale price of the real eestate or upon terms differing from those actually agreed upon with the lender?

    @Bill wrote:

    No, there is no trouble in keeping a retail buyer in the loop after the short sale offer has been accepted, signed and sealed and awaiting lender approval.

    @Montana DRE wrote:

    So how can this be made to work? You have all heard of people cashing in on selling soon-to-be-foreclosed properties. How do they do it? To begin with, they need to put their money on the line. In the example above, the investment busnessman risked nothing. If he had not come up with another buyer he could have simply abandoned the option to purchase and walked away.
    However, if he had actually pruchased the propety without having another buyer waiting in the wings, and THEN marketed it and sold it sometime later, he probaly would have been OK. Maybe he would make a profit. Maybe he would not. But the bank would have gotten the full market value of the property as it existed at the time thy made their deal.

    Now, I know we are doing it right, but the DRE has the agents up here running around with tail between their legs and constantly looking over their shoulder. If you are asking anything less than what THEY percieve as fair market value, it won’t fly. That is my take on this letter.

    Also, in a previous letter, the DRE directed the agents to do the negotiating with the lender.

    #32773
    Avatar of corkhorner
    corkhorner
    Participant

    wow, Stu.
    Good there are only 3 houses in Montana? [j/k]

    Are those typos dre or yours/

    c h

    #32774
    Avatar of sstanton
    sstanton
    Member

    Probably mine. He would not give me an electronic copy, just a print out. I had to type it out and my typing aint that good.

    Ya, it is difficult with only 3 homes in the state, but what can you do.

    Get this, someone actually called 911 stating the kids jumping off the Old Town bridge into the Jefferson river were being a traffic hazard (?? a hazard?). Let’s see, it is a one lane bridge (converted Rail Road bridge) on a dirt road 3 miles outside of this metropolis of 1800 people, that has maybe 50-60 cars a day crossing it, oh, and the speed limit on the bridge is 5 mph. Kids have been using that bridge long before cars existed.

    #32775
    Avatar of corkhorner
    corkhorner
    Participant

    THAT’s a riot, Stu.

    Absolutely preposterous.

    Reckon they have nothing else to do?

    Come on down to SD county where at any juncture at any time there are about 100 veicles a min doin about 80 mph.
    Ya homesick yet?
    c h

    #32776
    Avatar of sstanton
    sstanton
    Member

    Cork, actually, I was in So. Cal. a couple of weeks ago, came in in stealth mode. I was down to attend a very tragic family funeral.

    I have forgotten how to drive in So. Cal., with all those cars whizzin’ by, just scary I tell you.

    I did manage to have a real nice lunch with Bill. I’ll tell you how long it has been since I have met up with Bill in person. I didn’t realize he forgot how to shave ;)

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