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Before You Go and Refinance And Your House was on The Market or Was It?

By
Real Estate Agent with Robert Paul Properties

I homeowner had tried without success to do the "For Sale By Owner" with limited results.   In fact, they even had a buyer's agent call and ask if they would cooperate in allowing him to show their house to one of his clients.  They agreed, and allowed him to make an appointment and show the house.  Nothing came of it, no contracts were signed and they never heard or saw that broker again.    After a few months with no activity, the homeowner took the sign in front of the house that said " For Sale By Owner" down.

After further consideration, they decided to stay in the home and refinance it to take advantage of a lower interest rate.  Their credit was fine and the bank agreed to the lower rate, but as in most cases, it would depend on an appraisal.  Another condition, the banks require today, when they are selling the loan to investors on the secondary market, is that the house cannot be on the market for the past 90 days.  The home owners assured them they had not listed the house in the past 90 days and did the "For sale By Owner" 7 months ago with no success.

Now the appraiser decided to verify as part of his requirements that the house was not on the market.  He checked the local MLS and it was confirmed that the house was not listed in MLS in the past 90 days.  So now the appraiser decided to check other websites and found the house was indeed listed for sale on ZILLOW!!  The house was for sale on Zillow and it was linked to the agent who showed the house to his client when the owners had allowed him in the house.  Later, the appraiser found it to be advertised on the broker's website as well.

So when the homeowners contacted the agent and asked him what he was doing, he was extremely apologetic and told the homeowners that he intended no harm to come about from this.  He had know idea how it ended up on Zillow. 

The homeowners are victims in this situation.  They are trying to work this out with the bank who requires that they would have to reapply for a new loan after it was removed from Zillow - a 90 day waiting period is normally required.

Do they have any recourse against this broker?  No contracts were signed and now they may suffer damages because of his actions?  Be aware of the fact, that when you post anything on the Internet it is free for the taking.   Any real estate agent could have taken a picture of the house and posted it on the Internet and the homeowners would not have known it or have any control over the real estate agents actions. 

What do you think of this one????

 

 

Posted by

Laurie C. Bailey-Gates

Robert Paul Properties

Serving Cape Cod, Massachusetts

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Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Gee. I wonder how it ended up on Zillow and why the agent had no idea about it. I guess they should put a call into the agent's Broker--maybe s/he will know.

May 29, 2010 03:06 AM
Laurie C. Bailey-Gates
Robert Paul Properties - Barnstable, MA
ABR, SFR

In response to the appraiser - the house had enough value and the appraisal would have been okay without this one lender requirement that a house cannot be advertised for sale within the last 90 days.  The homeowners no longer had the house advertised within the past 90 days that they were at least aware of.

 

Keep the posts coming - you all have some great thoughts on this one.

May 29, 2010 03:09 AM
Nate Gerard
Keller Williams Premier - Stillwater, MN
CDPE, East Metro Twin Cities Realtor

Agreed the agent acted unethically.

Is the 90-day rule a law or lender requirement. Could a mortgage broker find a lender who wouldn't have this requrement?

Finally, any FSBO on the market for many months without multiple showings and an offer is overpriced. Condition and marketing have some to do with it but failing to sell a home (whether listied with an agent or FSBO) is the result of unrealistic pricing.

May 29, 2010 03:36 AM
Pat, Ben and Martin Mullikin
M3 Realty - Brookfield, WI

The agent was totally out of line for posting a FSBO on his website. BIG NO-NO! Needs REMEDIAL REAL ESTATE 101.  And I agree with whoever said the appraiser didn't have both oars in the water,

May 29, 2010 03:38 AM
Rob Lang
At Home Kansas - Shawnee, KS
Local Expert in NE Central Kansas Real Estate Home

Sounds like an ethics violation.  The homeowners should contact the local MLS, if they want to proceed with any action.

May 29, 2010 03:53 AM
Marzena Melby
Coldwell Banker Burnet Realty - Richfield, MN
Realtor, Twin Cities Minnesota Real Estate

Ethics violation, deception, misrepresentation, and they are all big - all are INTENTIONAL.

May 29, 2010 04:07 AM
Jesse Skolkin
Independent New York State Certified Real Estate Appraiser - Fresh Meadows, NY

The following question is on most appraisal forms currently in use:

"Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal?"

The next line is as follows:

"Report data source(s) used, offering price(s), and date(s)"

Whether or not the property was FSBO, or listed by an agent (selling or listing agent) is immaterial.  The appraiser is required to report any listings for the subject property noted during the last 12 months.  What a lender wishes to do with that information is strictly their decision.  By deciding to go the FSBO route, the seller/borrower lost the control that he/she derives from a listing agreement.

May 29, 2010 04:23 AM
Janet Guilbault
Platinum Home Mortgage Company - Walnut Creek, CA
San Francisco Bay Area Direct Mortgage Lender

Let's stop and consider why the lender will not refinance a house that was for sale....and let's face it, the house WAS for sale...the intent was to get rid of the house, right?

If someone wants to get rid of a house, there is a good chance that they are going to sell the house the first chance they get and therefore pay off the loan early after they refinance.

That is a losing deal for the bank.

Buyer could also be bailing out after milking the house for all the money they can...

May 29, 2010 04:25 AM
Laurie C. Bailey-Gates
Robert Paul Properties - Barnstable, MA
ABR, SFR

Okay trying to keep up on your comments:

 

Many feel the FSBO was overpriced and lingered on the market - really not a concern for the topic as I believe they only tired this for a few months before taking the sign down.  The appraisal was fine in terms of value and the bank was ready to go forward other then this one requirement that a house cannot be on the market for the past 90 days.  This is a requirement by the investors on the secondary market.

The owners may go to a smaller bank and try there but they were 10 days away from closing and have incurred some expenses with the bank in order to close on this loan.

 

May 29, 2010 04:37 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

Laurie, that sounds like a legal question based on your state laws.

May 29, 2010 04:49 AM
Dave Minder
Wellspring Investments LLC - Quarryville, PA

I think the agent was totally wrong in all aspects and agree with the Bull$hit statements here but the bank was also at fault here if there was no contract hen the house was not on the market by a realty firm, but it was on the market earlier and I believe that the seller was within the window. I understand the idea of trying to milk the property and also her statement that it was being marketed but clearly disagree with the appraiser here. This looks like a lawsuit looking for the right lawyer.

May 29, 2010 05:30 AM
Lesley Wagstaff
Re/Max Results Realty in Vancouver, BC - Coquitlam, BC
For Real Estate and Mortgages

I think the agent must have amnesia.  Go to feel sorry for people who are in such a bad state that they can't remember doing something..THEY WERE NOT SUPPOSED TO DO ANYWAYS!!!  Lets this poor realtor gets what he deserves....;)

May 29, 2010 05:34 AM
Phil Hopkins
Desert 2 Mountain Realty - Payson, AZ
Rim Country Arizona Realtor

The lender should allow an exception, with a written explanation from the borrower, in this case. As for the Realtor that was so aggressive that he might have jeopardized the position of the homeowner, none of us were there at the time. Before jumping on the bandwagon to punish him, I would want to ask him "Did you believe that you were trying to help those people?" I realize that many will criticize this, but if he truly thought he was "helping", even though he may be a blundering idiot, I would have a difficult time pursuing punishment. Ultimately, it's up to the homeowner as to whether or not the other agent should be pursued for discipline.

May 29, 2010 07:11 AM
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

If it was on a broker's website (and others by extension/reciprocity such as Zillow) without a signed listing agreement, I would report that broker and agent to the State Division of Real Estate and review the case with a competent real estate attorney for potential civil liability.

May 29, 2010 07:35 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Is this 90 day thing a new thing or just this particular lender? I've never heard of this, though I've heard it can't be listed currently to refinance.  I've heard of sellers taking their homes off the market just to refinance if they didn't sell.

May 29, 2010 12:53 PM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

Russell in comment #3 hit it on the head...  I call BS on the agent.  He claimed the listing and had no right to do so. 

May 29, 2010 01:05 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

IMO the agent or brokerage claimed the listings. They don't just pop on Zillow.

May 30, 2010 01:03 AM
Anonymous
Buddy Pope at Virtual Homes Real Estate

The problem with financial institutions and the markets they sell to is that they have these blanket rules/policies with little ability to read the TRUE situation.  Their policies do not allow for exceptions apparently, at least not in a timely fashion.  They need to have safety valve policies too, a system of handling exceptions that can be addressed quickly in these circumstances instead of throwing the baby out with the bath water.  Shame on the agent for posting it as their listing on Zillow- yes, I believe you have to claim the listing as Missy Caulk-Ann indicates. 

May 30, 2010 04:40 AM
#37
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

It seems the agent must have "accidentally" left it up for some time as the  owner states it was 7 months since they tried to sell for sale by owner.

 

May 30, 2010 06:47 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

With all that said, the fact remains that it was for sale, and it does not matter it was FSBO or listed through MLS

May 31, 2010 02:42 PM