I have been approached to assist in selling a short sale, but I myself may have interest as an investor (BoA)

[Justin Polston]

Hey everybody, long time poster, first time asker. I'm hoping there are other realtor/investors out there that can help with this.

As the title states, I've been approached to list a gentleman's home that has been identified by Bank of America as a potential short sale (BoA is the servicor).

I have been working on behalf of the seller to initiate the short sale. I've been registered with Equator. I've gotten the home through the first several hoops of short sale initiation, and I'm currently at the point where I'm submitting all docs on behalf of seller (hardship forms, etc.).

My initial thoughts on this: I've purchased short sales, but never been on the listing side, and I viewed this as a great learning experience (as I am a full time real estate investor more so than real estate agent) to gain first hand short sale knowledge and be able to help those in similar situations in the future (as I think short sales will be more popular than foreclosures to the banks going forward).

However, I have a personal fix 'n flip that I just received an offer on and will close probably right on time with completion of the extensive short sale paper work (30 days out).

My current thoughts: This house is a great investment and is in the same neighborhood as my current flip, and I could stand to make some good money by purchasing this home. With the funds loosening up from my current sale, I could parlay them right into this home. I have secured the listing agreement from the gentleman (lacking a starting selling price), but he and I would not like to put it on the market until we get some things figured out (like my current question). He knows I have interest in the house and is completely on board with me purchasing it, and would rather me buy it now than wait for other potential buyers and drag this out (emotional issues attached with home make it something he wants to get away from quickly).

My question: Are there any potential wrenches to be thrown into the system if I put an offer in as a listing agent before the paperwork process we're going through now is finished? Or does it even matter, as in would this paperwork process still be happening even if I didn't list it and just put an offer in that would initiate a short sale? Basically, if I put an offer in now, would there still be all of this paperwork and would the bank still require it to be listed at a market price to promote competition in their best interest? Or would they just take this offer? If they require it to be listed at a certain point (because I'm acting on the seller's behalf to request a short sale and waiting for acceptance), will I be able to throw an offer in? I don't mean for there to be any ambiguity (but I know there is).

The home is not yet on the market, the listing agreement is signed but he has not yet stated a starting selling price, and the seller would rather me buy it now than wait for others later. I have it in the listing agreement that his goal is a short sale and he is not wanting to profit from the sale.

I know this is a lot of information, and if I failed to mention something important, please let me know! Thanks everyone!

[Wayne Brooks]

Yes, they have no confidence they are getting market price if it hasn't been exposed to the market. FHA has a very specific process-ATP-Authorization To Participate, where they will appraise the property and set the price prior to marketing, and depending upon whether the borrower is current, among other things.