This probably won't seem new to some of you but kinda new to me. It never ceases to amaze me that dishonest people lurk just around every corner.
One of my sellers recently told me they wanted to use a shot sale company to negotiate a 'short sale' on thier behalf, of the home I've been trying to sell for several month, with no luck.
The Short sale company contacts my seller direct, they inform my seller that they would pay cash for the home, they are investors in apool with a lot of money backing her. She tells the sellers, let your real estate agent focus on bringing a buyer and turn over your letter of permission to communicate with the bank - your assets and income statement, a hardship letter and make me cry when you write it - at least you'll have peace of mind knowing that I'll buy it and you will be free. Your credit, in the end will show 'PAID IN FULL' and with Obama's new law, you won't have to pay any taxes on the delta that the bank claims at a loss - end of story, like you'll be whole again - NOT!
Meeting set up for Listing agent to meet short sale girl -
Meeting went smooth as I listened to short sale girl paint a pretty picture of how peaceful everything would be. The first purchase and the buyer that you bring in will close simultaneously, or within 24 hours of eachother. Shot sale girl says, I'll need to control the BPO [Broker's Price Opinion] even though you already do them for the bank, I need full control over the price reflected on this opinion. It's crucial to get the bank to pay the lowest price and you'll get a buyer to pay the market value of the home.
It wasn't long before I felt like the bank was about to be decieved, the ultimate buyer would feel ripped off, possibly the lender representing the bank of the new buyer and then - the seller would have second thoughts after the deal would be finalized and everyone would come back to visit me and my broker, at the end of the day - with a big ol fat law suit.
WHEN YOU FEEL A RIPPING SENSATION IN YOUR GUT - It's usually telling you that something isn't right!
IT'S A BREACH OF FIDUCIARY DUTY AND IT'S KNOWN AS A DOUBLE CLOSE AND FLIP -
If you have a license to sell real estate, you'll want to stay far, far away from this one.
DON'T BE FOOLED, This is what we've gotten all the training for.
Watch your back on these 'to good to be real' short sale companies. Find out how they work before you sign any paperwork. If it sounds to good to be true, it usually is.
Cindy Mustafa, ABR Realtor [216] 408-1513
Remax Traditions
Cleveland, Ohio
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