short sale with owner/agent acting as agent??

Question

I am looking at several investment properties owned by an agent who is overleveraged, upside down and divesting, but he is acting as agent for the properties... I believe ahead of getting the go ahead to do so from the lender. The conflicts of interest here made me want to get an agent to work with me on this deal, but he said to me he is not paying an agent. All this is a bit weird to me since it is a short sale. I believe this guy to be a bit shady. I tried calling the lender directly but was told to talk to the agent. Comments? Advice? Clearly I wouldn't give him a deposit check in his or his brokerage's name. But I also don't want to make an offer and have him use that to shop other higher offers. I would ask him for email confirmation that the lender has received the offer and a contact person with the lender.

Minna Reid · Answer

Ron - LOL - no that's not what that meant. It means the short selling lender works for the lender and is not who these two need assistance from to figure out how to work a short sale. They should get someone else - a lawyer/agent etc to help them on their end.

Ron S. · Answer

Meeting financial conditions for a lender to approve a short sale is a moving target. There are some "financial" criteria to a short sale but the heaviest weight is based on the offer and the value, then compared to the foreclosure and the value. If one nets the bank more over another scenario, they will typically pursue that route however, they aren't going to entertain a short sale offer without a fully executed purchase and sale agreement where all parties to the transaction are at arms length.This sure sounds like a doctor doing surgery on himself. I personally wouldn't waste my time dealing with someone that sounds like they have a couple of screws loose. If a would be buyer wants it and had the means to purchase it, screw this game and just buy it at foreclosure sale and eliminate the mad hatter from the equation.

Minna Reid · Answer

Not exactly - I've gotten plenty of short sales done for sellers who have assets or are current or whatever. They are tougher but not impossible. That's not the issue here though...you don't know short sales and likely neither does this seller. That's a recipe for a disaster. Someone who knows what they are doing needs to be involved (and that someone is not the short selling lender). If he wont agree to get help - lost cause.

Minna Reid · Answer

Russel - any agent would be a fool to list his own short sale and work it for free and try to keep other agents out. There is virtually no personal benefit and it adds many new obstacles. My guess is this agent just does not know what he is doing. Most likely he will have little success and will eventually get professional help. I would recommend the OP wait until that time.

Jason D. · Answer

@Jocelyn Canfield something's definitely fishy. If it is truly a short sale, he will not be paying any commission because there is no cash coning to him. I would not persue this unless it's all above board (listed on mls and you having an agent working for you).

Wayne Brooks · Answer

An agent Can list their own short sale property, but they can Not receive a commission for doing so. Sounds fishy he’s refusing to cooperate with a buyers agent......the lender eats the commission in a short sale, not the owner. It would also seem Lee’s “arms length, fully exposed to the market” with him on both sides as an agent. And to clarify, the lender doesn’t see “offers”, only signed contracts which they work one at a time. This is probably a pass unless the agent changes his approach.

Ron S. · Answer

I'm hoping you don't mean it's the short selling lender that doesn't know what they are doing!?:)

Jocelyn Canfield · Answer

Thanks all for your input. I did put an offer package together and send to him (no deposit). He was going to try to get a 3 way call with bank. at this point I am prepared that it probably won't happen.

Jocelyn Canfield · Answer

The whole situation is very awkward. He has 5 properties he is losing and which are in arrears for many thousands on HOA fees. The HOA is who is forcing the sale. One the bank is outright taking. Several he says are short sales with another lender, but are listed online as Investor sale. I told him i would not do a formal offer until someone from the bank was clearly involved and would ask closing agent to hold escrow. He's trying to suggest to me to keep a tenant who is in arrears because he is hoping to get back $ from him in the summer. I could go on and on about all of the inappropriate things he has said and done. I have never done a short sale before, however. Doesn't he have to meet financial conditions for a lender to approve short sale? Like have virtually nothing in assets?

Jocelyn Canfield · Answer

Trust me, this girl does her due diligence.On his personal website it says short sale. On realtor.com, it says investor sale. it sounds as if there is not someone assigned to this from the lender side yet. Also he doesn't disclose that the owner is a licensed agent.