Real Estate Investor · Winter Park, FL · Member since 2009 · 94 posts · 124 votes
Anybody know what this means? Is this an agent that's reporting WRONG data on the MLS? I spoke with the agent and, basically, she said the bank has to approve of the offer and it should happen within 2 months.
....uuuum sounds like a SS to me. Anybody have any other "perhaps"?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
If:
1. The bank must approve the sale; and
2. The sale price is less than what's owed on the property,
Then it's safe to assume this is a short sale.
While I guess that technically there are probably other explanations for this (I don't know what they are, but it sounds like Allen had one), there more chance the agent is lying, in my opinion.
Not sure why it matters at this point -- as you have the pertinent information -- but if you're really curious, just ask the agent, "If this is not a short sale, why specifically must the bank approve the contract?"
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Sounds like a short sale to me...perhaps the listing agent is trying to keep prospective buyers from immediately turning away by advertising it as a short sale.
Why not ask the agent directly if it's a short sale, and if she says no, ask her why the deal needs bank approval...
Real Estate Investor · Winter Park, FL · Member since 2009 · 94 posts · 124 votes
15y
I spoke to the agent and asked her was this a short sale. She said no, but that the bank has to approve the offer and it should take less than 2 months. Like I said, it sounds like a SS...she didn't say anything that explained that fact away.
I even asked if the seller owes the bank more than what the home is being sold for and her answer was yes.
Perhaps there's a more specific question I can ask.
But I'm wondering if I should simply treat this as a short sale and make an offer like I would any other SS, or should I be leary of things going awry?
Commercial Real Estate Broker · Memphis, TN · Member since 2008 · 71 posts · 11 votes
15y
It is possible that the Trust department at the bank is involved. For example they may be the trustee of an estate and selling it to invest the proceeds.
I would not assume the agent is lying. Just make an offer or move on.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
If:
1. The bank must approve the sale; and
2. The sale price is less than what's owed on the property,
Then it's safe to assume this is a short sale.
While I guess that technically there are probably other explanations for this (I don't know what they are, but it sounds like Allen had one), there more chance the agent is lying, in my opinion.
Not sure why it matters at this point -- as you have the pertinent information -- but if you're really curious, just ask the agent, "If this is not a short sale, why specifically must the bank approve the contract?"
Residential Real Estate Agent · Costa Mesa, CA · Member since 2008 · 1k+ posts · 380 votes
15y
If it walks like short sale, talks like a short sale, and looks like a short sale, it's probably a short sale.
However, I've run into listings where some private equity company bought an NPN of what was previously a short sale, called the listing agent and told them they could continue to list it, but on their terms. What's strange about that is that the point of these companies taking over the note is that they don't have the bureaucracy that takes 2 months to figure out whether or not they have an acceptable net.
Like J said, it probably doesn't really matter a whole lot, but this agent might specialize in such deals with a particularly inefficient private equity company. Or it could just be a short sale and she's clueless.
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
15y
Originally posted by Jake Kucheck:
If it walks like short sale, talks like a short sale, and looks like a short sale, it's probably a short sale.
However, I've run into listings where some private equity company bought an NPN of what was previously a short sale, called the listing agent and told them they could continue to list it, but on their terms. What's strange about that is that the point of these companies taking over the note is that they don't have the bureaucracy that takes 2 months to figure out whether or not they have an acceptable net.
Like J said, it probably doesn't really matter a whole lot, but this agent might specialize in such deals with a particularly inefficient private equity company. Or it could just be a short sale and she's clueless.
I agree with what Jake said. You will see more and more of these where the investor has sold the NPN and may very well be working with the seller for a deed in lieu. Many are large hedge funds and private equity companies buying large pools from investors.
In order to avoid the costs to present proper documentation in order to foreclose, they are offering the borrowers and tenants cash for keys in order to avoid further damage and vandalism.
A broker friend of mine actually witnessed a used car being given to a borrower in exchange for leaving the home in good condition and the keys.
Since there is so much controversy over the foreclosure proceedures coupled with the sheer number of pending actions this is the best way around it for the investor.
Real Estate Investor · Winter Park, FL · Member since 2009 · 94 posts · 124 votes
15y
Guys, thanks so much for your input.
I have actually concluded that it's a SS. What I was asking after that conclusion was should I proceed with making an offer with an agent who's being deceitful.
FYI...I went ahead and made the offer so hopefully things go well.
I always learn something new from my posts, though; so thanks Jake and Scott.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
15y
Deceit is never a good thing but I don't see how you lose much from it since you have figured it out. In any event, you should never go based on what the other party's agent says to you. Perhaps her deceit will work in your favor by putting more pressure on her to get a quick response to your offer.
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
15y
Originally posted by invmatchmaker:
Guys, thanks so much for your input.
I have actually concluded that it's a SS. What I was asking after that conclusion was should I proceed with making an offer with an agent who's being deceitful.
FYI...I went ahead and made the offer so hopefully things go well.
I always learn something new from my posts, though; so thanks Jake and Scott.
Also, there may have already been an investor involved in this transaction (A to B)and you were ultimately looking at the B to C listing.
A clue to this may be within the listing remarks, the agent should have some disclosure like "transaction is contingent upon third party acceptance...." which tells me I should not get involved in this transaction as they are probably looking for a retail buyer.
Real Estate Attorney · MO · Member since 2010 · 57 posts · 64 votes
15y
We have offer in on a property in CO where the Seller is "qualified" for BK, but has yet to file. The listing, as per his agent and counsel, required pre-approval by a trusee......even though he/they have not filed to avoid a "preferential kickback" when they do file.
Real Estate Investor · Winter Park, FL · Member since 2009 · 94 posts · 124 votes
15y
@Vikram-I'll keep that in mind while we wait. I'll work it from the "Ms. Agent, I thought this wasn't a SS" angle.
@Scott-she said the bank has to approve. Why would you not make an offer just because they want a retail buyer? I mean, they could still be motivated couldn't they. To determine possible motivation, I look for listings that have been on the MLS a while.
@Steve-I'm not sure I understand your example. What do you mean by "preferential kickbacks". Can you please elaborate.
Real Estate Attorney · MO · Member since 2010 · 57 posts · 64 votes
15y
"preferential kickback" would be when a Seller has knowledge that he/they are going to discharge creditors in BK and they sell an asset or some assets "before" they file. The Court would want that sale to have an approval to ensure it was not a fradulant conveyance.
So, if they have large portfolios, sometimes, they still sell, or follow through with a sale, but they make it subject to approval of a Court approved 3rd party.
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
15y
Originally posted by invmatchmaker:
@Scott-she said the bank has to approve. Why would you not make an offer just because they want a retail buyer? I mean, they could still be motivated couldn't they. To determine possible motivation, I look for listings that have been on the MLS a while.
I too look for days on market as a qualifer. In my opinion, with short sales, there are many other factors to consider and the least of which is DOM.
Some people prefer the shotgun approach where multiple offers are submitted with little or no methodology. Others prefer to screen their leads for certain qualifers in order to maintain a higher turn rate.