The realtor listing our property would be one of three investors carrying a second mortgage. Is there a conflict of interest per details below?

Asked by sperada, Crown Point, IN Fri May 3, 2013

The offer he brought us is very low, with a very high down payment that will pay off part of our second mortgage - we will see little of it. He is telling us that we have a "problem property" and that the offer is probably the best we can expect, but he will obviously benefit from holding the second mortgage that seems very safe given the large down - almost 50% of the offer price. We are concerned that this is the best offer for him, not necessarily for us, and wonder if he has adequately marketed our property. Just wonder if I'm being overly distrustful and if this seems to be on the up-and-up?

Help the community by answering this question:

+ web reference
Web reference:

Answers

5
Tony Mitidie…, Agent, Orland Park, IL
Sat May 4, 2013
I'm not sure I understand. I think, first, it's important to know why anybody, with the possible exception of a traditional buyer's lender, would have to 'carry' or hold a second mortgage on your property.

You stated that it "will pay off part of our second mortgage." Does this mean the total purchase price offered is not sufficient to satisfy the total debt owed on the property?

If your property doesn't qualify for traditional bank financing today's market is loaded with cash buyers.

It sounds like you may not fully understand what is being offered to you. You should talk with your agent more about this until you understand. You may also choose to consult his Broker unless he is his own broker; whereas you may wish to consult an attorney.

Tony Mitidiero
1 vote
Brent Wright, Agent, Portage, IN
Thu May 23, 2013
If you are concerned about the value of your home that you currently own then I would definitely hire an appraiser. It will be $350 but it will definitely be money well spent. This way you will receive the replacement cost vs. comparable cost. I think this would definitely give you a bit of ease.
0 votes
Jessica Klja…, Agent, Schererville, IN
Sat May 4, 2013
You have a right to hire a independed Broker to tell you hoestly the property value based on the current market conditions.
0 votes
Christine Mc…, Agent, Valparaiso, IN
Sat May 4, 2013
Contact Tim Reed at Your Choice Realty in Crown Point. We have a real estate commission that governs our actions. He is the person to contact in our area and should be able to answer any questions you have without a conflict of interest. Good Luck
0 votes
Matt Parker, Agent, Granger, IN
Sat May 4, 2013
I think we are missing some information here... He/She is paying off your second mortgage, for who? You? A New buyer? I think we need some more information here....
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more