All Forum Posts by: Lydia S.

@Eli King

Only FHA, VA and USDA loans may be assumable. Do a little google search of assumable loans and you'll find some answers for pros and cons.

For example investopedia.com has a good summary.

@Eli King

The seller would need to contact the servicer of their loan and confirm it’s assumable.

You would then need to qualify with that servicer plus have the funds to cover the difference between what remains on the loan and the purchase price for the home.

Will the servicer of the original mortgage allow a second?  I have heard that sometimes they don’t and that’s what prevents an assumption from working out.

I’m doing some digging and am aware of people who have used Traveler’s Insurance and USAA. 
If I hear anything else, I will contact you directly.

@Mike Dymski

What I described is not what led to the lawsuit.  

Each Realtor, agent or Brokerage may work for whatever compensation they desire and must outline it clearly in their agreements with their clients.  
Compensation is negotiable, always has been, and either the seller and/or the buyer will be responsible for any agreed-upon expenses per their listing contract or buyer broker contract.
Disclosure about compensation is more important than ever, and remains at the discretion of the representative and their clients, hence the need for those agreements which will be a requirement after the settlement.

Buyers and sellers must know how their representatives are compensated and by whom before they commit to a working relationship.  If I have a buyer client who has contractually agreed to whatever fee we discussed, and they are interested in an off market property, you bet I will attempt to save my client money by negotiating all or some of my compensation from the seller. That’s my job, to represent my client’s best interests, negotiate to help them best achieve their goals, abiding by all the laws, Fair Housing and Code of Ethics along the way.

If someone doesn’t want to sign an agreement with me, they are free to consider another Realtor® who has a different business model and practices, or even go forth unrepresented.  Fortunately, no one is forced to do something they don’t want to.

A couple of options exist.  
If you have a Buyer Broker Agreement in place with your agent, it may include the language that says all inquiries go through the agent, as well as what amount of compensation is due to them with any purchase you make as their client. So if you have such an agreement, they should be one making the connection with the off market property owner, even if you find it or hear about it somehow. Part of the agent’s process will be to reach out and find out how much compensation the seller would be able or willing to commit to, versus how much compensation you are responsible for.

If there is no buyer broker agreement in place, you are free to do as you wish, however, if you want representation and were hoping the seller will pay your agent, the agent should be the one to reach out to the seller first to make inquiries and secure a compensation agreement with the seller.  If you personally reach out to an off market property, the seller may say they will not pay your agent, leaving the compensation up to you.

Congratulations on passing your exam!

In order for your license to be active, you need to find a Brokerage to work under, so reach out to several and start interviewing them.  If investment is a major part of your plan, ask each about their expectations and support for investment-focused agents.

Nearly every realtors website these days automatically populates an email address and/or a phone number from someone who is visiting their site, whether they fill out contact information or not.  It’s just a function of how technology works these days.

Bob Gedraitis with Lamacchia is a great Worcester investor/Realtor® who you could call.  505-923-0333, [email protected]