Quick SS question on listed property

[Chris Jefferson]

I recently had a offer accpted on a short sale that was listed on the MLS. Seller has signed all of our contracts and we have recently started to negotiate with the banks. My questions is, that if a property is a SS and not a REO is the realtor still required to continue to submit offers to the bank??? The realtor on this deal is really giving us a hard time and says she will continue to market the property, which puts us in a situation of possibly working for free. Can anyone shed some light on this please....

[Clifton Jones]

I would tell you to see your real estate lawyer on this. Who is doing the negotiations with the lender(s)? Is your contract an option contract? What are the rules in Virginia regarding the listing and marketing of a property under contract?

In Florida, the realtors must get an addendum signed by all parties that allow for the marketing. As an investor, I do not sign that addendum, but with the realtors I work with, I still allow them to continue to market the property. I want what is best for the homeowner.

Here is the caveat to the previous paragraph. I require the realtor to sign a negotiation contract that states that as long as my company purchases the property, there will not be a negotiation fee charged, but if they find another buyer while I am negotiating the property, I will submit it, as long as it is a higher offer, but a negotiation fee will then be applied.

All of this is spelled out in the negotiation contract. On another thread somebody asked how the fee can be tacked on to the HUD-1 after it has already been submitted, so I will address that, also. If a new contract comes in, then a new HUD-1 must be submitted with the new contract. Since the price has changed, the lenders will require a new HUD-1 to identify their net proceeds, based on the new contract. Hence, you are no longer using the original HUD-1, so new fees and/or expenses are allowed to be included.