If the property is listed as a short sale and a foreclosure can the realtor the property is listed with control the amount the seller may bid?

Asked by Teresa, Florida Sat Dec 18, 2010

we want to buy property that is listed both ways and the ReMax lady advised she would not turn the bid we make into the bank for any amount under $200K. the home has been sitting for a long time and needs lots of replacements and work.

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9
Joanna Jensen, Other Pro, Livermore, CA
Sat Dec 18, 2010
Hi Teresa,
There is some confusion here. A Short Sale and Foreclosure are Two Different Things!!

Maybe your thinking of an Auction with a Minimum Bid??? The realtor has to present ALLL offers to the home owner they can not say well I will think on it or Ill sleep on it. They have to present all offers. Even if they are low.

A short sale is before the home goes to foreclosure. A short sale is when the home owner still owns the homes. I get realtors telling my clients all the time that their home can be sold out from under them all of the time when in fact they can not! Their home is their home untill they are sold at the foreclosure sale. So a short sale is when the lender allows you to sell the loan short of what you owe. then a foreclosure is when you were not able to sell the home short and the home went back to the lender as a foreclosure so there is no way both can happen at the same time. When the auction happens the home owner can bid any one can bid who has cash, typically depending on the condition of the home, value of the home if it isnt bought short before the foreclosure sale it may end up going back to the lender.

If your looking to buy a short sale you really should use your own realtor, you shouldnt have to pay out of your pocket, the lender most likely will be paying the comission. Dont Use the listing agent. The law says the listing agent has to look at all offers. If you feel they are not looking at your offer call their broker/ their boss.

Best of luck!!

JoAnna Jensen
Realtor

Legal Realty
925 699 5041
1 vote
Leo Albanes, Agent, Punta Gorda, FL
Sat Dec 18, 2010
Hi Teresa,
You have to ask the realtor if the bank has given instructions not to submit any offers under $200K.

If the bank did not specify the amount or min Purchase bid then by ethics statndards she must present any and all offers to the selling party. If this still becomes an issue than contact her Broker and inform Broker of the situation or contact another agent who will work for you as a buyers agent with only your best interest in mind not the listing agent who is really working for the seller's intrest (Remember that the listing agent is working for the seller). The seller is the listing agents client.
There are times that both listing agent can also be selling agent and compromise and make both parties happy. but if you hare having trouble submitting your bid than you have to find someone that will work for you or find another home. Contact me at 941 626-9000 if you have any questions, need some guidance or want some Representation with your Real Estate needs. Make it a great day.
1 vote
Pat & Steve…, Agent, Westlake, OH
Sun Dec 19, 2010
We have heard of some banks doing parallel short sale/foreclosures. This means that one department is working on the short sale and another department is working on the foreclosure, and which one is the fastest wins. Now, in regard to the short sale, the status of the listing may be contingent, meaning that the bank has accepted all of the purchase offers that it will consider. If you do not have a Buyer's Agent, you should retain one. A Buyer’s Agent will protect your interests and his/her commission is paid by the Seller.
0 votes
Bob, Both Buyer And Seller, San Diego County, CA
Sun Dec 19, 2010
I have if you like give me call 858-668-0800 and we will go from thir thanks
0 votes
Lela Hankins, Agent, Escondido, CA
Sat Dec 18, 2010
Hi, Teresa,

I wasn't clear from your message if you were dealing with the listing agent who is representing the seller or if you were dealing with your own agent who is representing you. The seller's agent (or listing agent) has a fiduciary responsibilty to represent the seller's best interests. If they are not representing you, they have no fiducicary responsibility to you. As others have stated, the seller may have given THEIR agent very specific instrustions as to what offers to push forward. Ethically, an agent has to advise their client of all offers received as long as they meet their clients specifications. I do recommend that you have your own agent looking out for your own best interests if you do not have one already. Further, have your agent help you substantiate your offer with information about recent sales and costs to bring the property up to the same condition as recent sales. Sometimes the seller and/or their short sale lender need assistance in understanding the true value of a property.
0 votes
Diane Conaway, Agent, Escondido, CA
Sat Dec 18, 2010
Hi Teresa,
It sounds like the house is a short sale and is pre-foreclosure. Banks on short sales want to get close to market value. The bank orders an appraisal to make sure they aren't being taken advantage of with extremely low offers. I think that's what the agent was trying to communicate to you. If they've had previous offers, they may know that other low offers have already been rejected. Although it appears to be sitting for a long time, there is typically much negotiating going on with the bank that you may not be aware of.
0 votes
Joan Wilson, Agent, San Diego, CA
Sat Dec 18, 2010
You can't have it both ways. If it is a foreclosure, then the bank owns it. If it is a short sale, then you are dealing with the bank and the owner. Either way, the bank probably has a minimum they are looking for, and believe it or not, it won't be very discounted...just because of the shape. You need to find a Realtor to work with that knows the area. In this case, I would not work with the listing agent. Put in your offer, then keep looking. San Marcos is great place to own.

Good luck,
Joan Wilson
760-757-3468
0 votes
Marcie Sands, Agent, Poway, CA
Sat Dec 18, 2010
Teresa,

Your agent should be doing the investigation for you. Have they provided you with a comparable market analysis? Have you seen the house in person? The seller may also have instructed the agent not to present any offers under $200K. If you are not working with a CA REALTOR, I advise you find one to represent you. (The commission is already established in the costs of sale to the seller, so no expense to you). The seller has a bit of say here as well as the seller's agent probably has an idea what the bank will accept in order to approve the short sale. (No use wasting everyone's time).

Kind Regards,

Marcie Sands, REALTOR
Simply The Best Real Estate Co., Inc.
760-644-1562
0 votes
Patrick Beri…, Agent, Seattle, WA
Sat Dec 18, 2010
Leo makes a good point--It sounds like the bank has a minimum they're looking for at this time.
0 votes
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