Foreclosure in 34269>Question Details

David, Home Seller in 33908

In a short sale can my broker do a deal behind my back to get my house to an investor thru foreclosure w/o me knowing by dealing directely with my bnk

Asked by David, 33908 Wed Mar 24, 2010

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6
Andrew & Elena Ollick’s answer
Hypothetically, one could let the property foreclose and have an investor buy it at an auction, but it's very unlikely that you wouldn't know about the fact that the foreclosure has gone through, because you'd be receiving certified letters to that effect.
Your question isn't 100% clear, because you're mixing two terms.
Is it a short sale or a foreclosure? A Foreclosure would be a public auction, so ANYONe could buy it there, including the agent's "investor".
Clarify exactly what your concern is and i'll try to help you.
You're welcome to email me at eo@oceanhomesrealty.com to keep it private.

Elena Ollick
Amerivest Realty
Faith Home Loans
239-206-4500
800-801-6080
eo@oceanhomesrealty.com
skype: napleshomes
Get Pre-Approved: http://www.faithhomeloans.com/express.html
0 votes Thank Flag Link Wed Mar 24, 2010
David, your question is WAY above the pay grade of a Realtor.

I would think you have good cause to talk withe a Real Estate Attorney if this was YOUR listing Broker.

John
1 vote Thank Flag Link Wed Mar 24, 2010
Hey David,

Call your lender immediately to be sure your agent has submitted a contract at the price you signed. It may be possible your Realtor is trying to do a same-day flip and not showing the bank your contract but a lower priced contract! One way to be certain what is going on is to contact your lender directly.

If it turns out your lender has a falsified contract that you didn't sign then call the FBI immediately and have the Realtor prosecuted!

From what I heard today the FBI has added about 200 extra agents in Florida to do sting operations on Realtors/Investors/Owners committing short sale fraud.

Hope this helps you. Hopefully your Realtor is acting in your best interest and not their investor or themselves! Unfortunately I see shady deals every day in Short Sales in Tampa Bay--especially by certain listing Reators and well known Real Estate firms. Why their brokers allow these agents to get involved in these suspect deals seems like pure stupidity to me...
0 votes Thank Flag Link Wed Mar 24, 2010
I really do not think this is possible. If the listing agent is working with you on a short sale, all sales have to be submitted to you before they go to the bank. Therefore you would know the offer before it is sent to the bank. If your suggesting that the listing agent is waiting for the property to go to foreclosure and then having a investor purchase the property, that is unlikely because if it is at the auction, there could be a number of people competing with the investor. If you are tallking when the bank takes over the property, differnt people in the bank handle REO's than short sale and most likely need mortgage investors approval for list prices or end sale prices.

Not sure what created the question, but it is unlikley that this type of fraud would take place in this enviorment because of increase regulations in the bank. Honnestly the banks are having a hard enough time trying to take care of business when it is "normal" .


Keith Manson

First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Wed Mar 24, 2010
First of all you need to understand no body even the bank can do a deal on your house until it forecloses, the bank does not own your home, you do, the bank just has a mortgage lien on the property.
Secondly you should be making every effort to avoid foreclosure through a modification, Do you know short sale is a form of foreclosure. Foreclosure is a life changing event you need to do something about it, get proactive, showing you were proactive to the court many times can save your home, courts are getting fed up with uncooperative banks. Call your bank now ask for a modification and document everything that is said or done and bring it to court.

Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of-foreclosure

Here are some of the ramifications of foreclosure, short sale or deed-in-lieu-of-foreclosure, there are many more like your job, yes employers are checking credit records these days.

Your credit score will be reduced by 200-400 points, short sale a little less 100-200 points.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure
* Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
* Buying After a Foreclosure with Extenuating Circumstances
The waiting period is 3 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure
The waiting period is 4 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure with Extenuating Circumstances
The waiting period is 2 years up to 7 years.
* Buying After a Short Sale
The waiting period was just upped from 2 to 3 years. However, if a seller does not have a 60-day late pay, that seller may immediately buy another home. It's a reason to stay current on your payments while the home is on the market as a short sale.
In addition to the waiting period, most loans require a minimum down payment of 10% and a minimum FICO score of 680. The home purchase must also be the principal place of residence, not a rental nor a vacation home.

Lastly, most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.
0 votes Thank Flag Link Wed Mar 24, 2010
David,

No, not without committing several violations of the code of ethics. Realtors adhear to a strict standard of ethical behavior to other realtors AND to their customers.

Debbie Albert, PA
Coldwell Banker Residential
0 votes Thank Flag Link Wed Mar 24, 2010
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