Minna,
So you are saying you would let your sellers house sit on the market inching ever closer to foreclosure rather than accept an offer from an investor.
I think you miss understand, I for one go in with intention of buying but as you know since you "close more s/s than any other investor in the state"(not hard to do @100% of BPO). Buyer often flake out not wanting to wait months for approval. Investors do not flake out but we want to be compensated for it.
Also from your blog
"A CT Bank of America short sale success with FULL DEBT FORGIVENESS!
Bank of America has always been very stubborn about retaining their right to pursue a deficiency in their short sale approval letters. To my surprise, my most recent Bank of America short sale approval letter came with new language, completely releasing my client of all future liability for the debt.
Unfortunately, soon after the buyer flaked out and we had to secure another buyer and get a new approval. This time, the approval letter read the same way as the old Bank of America letters, with Bank of America retaining their right to pursue the deficiency once again.
BUT - THE THIRD TIME WAS THE CHARM. Soon after the second approval, the sale fell apart again for a major inspection issue. A new price for the property was renegotiated, and back we went for our third and final approval.
After a chat with the negotiator, she agreed to once again issue the full debt forgiveness letter releasing my client from all future liability for the remaining debt. Soon after the sale closed and my seller was able to move on with her life with full confidence her struggles with Bank of America were over for good. Hallelujah! It’s about time, Bank of America!"
Deal fell apart 3 times while your client kept getting closer to foreclosure. The day is going to come (if it hasn't already) that the bank is not going to give you an extension and move forward with the foreclosure. Then my dear when your client finds out you did not take a cash offer from an investor because you chose what you thought was the "strongest buyer" and you view of Ethical would not allow you to present the offer.
Furthermore
Seems to me you are negotiating on behalf of the seller I believe this is now illegal for you to do.
If you think this is not setting you up for liability.
Maryann, i couldn't let you have all the fun :mrgreen:
J Scott
you are correct the big issue is when there is already a buyer at 1 price but an agent submits a lower offer with intent to sale it to the higher offer after getting a discounted price for them or their partner in CRIME.
There is nothing illegal or unethical about putting a discounted offer on a DISTRESSED home and then marketing the home while in negotiations (3-6 months) with the bank.
Was just on a call the other night with Ron Ballard about this very thing. I have a copy of his power point in PDF if you would like. I have sent an email to his office for permission to post it here in "Fileplace"
Agent like Minna just don't want to work these deals in this fashion and that's ok, but to lump all investors and agents who do as unethical and fraudulent is irresponsible.
It was fine when they where pumping prices up but now investors are making money and commissions are getting discounted, feathers are getting ruffled.
