Home Selling in Los Angeles>Question Details

Justasking, Other/Just Looking in San Bernardino, CA

An investor wants permission to negotiate with the bank to get a short sale on my friend's property. Is it ok? The property is listed with a

Asked by Justasking, San Bernardino, CA Thu Feb 10, 2011


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Anna M Brocco’s answer
What is your agent advising....and in order for your friend to best protect herself and any other assets he/she may have, he/she should consult with an attorney who specializes in real estate, before granting anyone permission to negotiate with the lender--most professionals do offer a free consultation.
0 votes Thank Flag Link Thu Feb 10, 2011
If the agent has not given good advice on this, then here it is.
Your friend needs someone who cares about them to negotiate for them. The agent who listed the property should know what they are doing, and do this as this is expected of them in a property that is upside down in a loan.
The investors does not care about the deal except to try to make some outrages fortune. This use to happen a year or two ago and this contributed to the downfall of home values all around us. Just remember when an investor buys a home in the neighborhood, usually that isn't good news.
So if the deal fails, your friend will more than likely go straight to foreclosure. The odds of the deal going through are next to nothing as most investors want to make at least a 30% gain.
Most banks, will not let a deal go through for less than a 5% loss these days. In fact for the most part market value is the only value they accept.
You would never want to give permission to a buyer to orchestrate the whole deal of a transaction.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Thu Feb 10, 2011
Ultimately the decision is up to your friend, but if the property is already listed, and I'm assuming the listing agent has resources -- whether him or herself who's negotiating the short sale, or a 3rd party negotiator -- your friend has to trust that the agent will take care of it. Also, does your friend know this investor? How would your friend know if this person is experienced at handling such a transaction? Regardless, I always say to stick to professionals!
0 votes Thank Flag Link Thu Feb 10, 2011
The bank is likely requiring the use of a Realtor to ensure antitrust regulations are being followed and the home is available to the general public. I seriously doubt that they would even be willing to talk with a private individual/investor. But since the home is listed with a Realtor, why would that relationship be circumvented? The Realtor should already have the proper disclosures and authorization to speak with the Bank regarding your friends loan, and the personal circumstances regarding the short sale process. Your friend would not want to give that right to a private individual with whom you have no fiduciary relationship.

Hope this helps.
0 votes Thank Flag Link Thu Feb 10, 2011
Is your friends property listed for sale, or is this something that is being worked out between your friend and the bank? If it isn't listed and this is something that the investor wants to try, give it a shot although I highly doubt that the bank would work directly with the buyer in this transaction. If the home is listed for sale, I KNOW that the bank will not communicate directly with the buyer.
0 votes Thank Flag Link Thu Feb 10, 2011
Bank negotiator does not communicate with the buyer that information provided to listing agent

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Thu Feb 10, 2011
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