agent liability: Duties of a Short Sale Negotiator...
- 11/09/12 06:33 AM
There is a lot of discussion regarding the duties of a short sale negotitor. There has always been a lot of dispute on the subject of who should negotiate a short sale. There is a lot of merit to the notion that the listing agent (or buyer’s agent) should negotiate the short sale approval. I work with numerous investors and there have been a lot of problems with this. Today, there is a REAL problem. A third party negotiating firm had been handling negotiations. The listing agent became impatient and demanded that she negotiate the short sale. Everyone agreed. Seven months … (3 comments)
agent liability: 3rd Party or In-House Short Sale Negotiations, Part III
- 01/21/12 05:56 AM
3rd Party Short Sale negotiations, Part III. Today, I wanted to discuss the reasons in favor of utilizing in- house 3rd party negotiators. The first reason for an in-house negotiator is that the agent already has established a relationship with the seller and there is a high level of trust. The seller will be comfortable discussing finances with the agent. The agent will also be diligent in pursuit of the approval since they are a professional and their compensation will dependent upon a successful outcome. Agents also have the experience and depth of knowledge to complete a successful approval. Keeping … (3 comments)
agent liability: 3rd Party Negotiations Part 2
- 01/19/12 04:30 PM
Yesterday, I wrote about whether it is prudent to utilize a 3rd party negotiating firm or perform the services in-house. I presented two legal considerations for the utilization of a 3rd party negotiation firm. Today, I will discuss the practical reasons why it may be prudent to employ a 3td party negotiating firm. According to NAR, the average short sale negotiation takes 27 hours to consummate. I maintain that this number is based on data that is now outdated. I believe that it takes at least 40 hours on average to complete a short sale. In any event, it takes … (2 comments)
agent liability: 3rd Party Short Sale Negotiation or In-House??
- 01/19/12 05:22 AM
3rd Party Short Sale Negotiation or In-House?? This has certainly become a contemptuous issue…so much so that it is almost political!! LOL I participated in a blog discussion about this last week and the opinions were strong on both sides. Soooo, I thought that we could have a discussion on here to view each other’s’ opinions. I will present the pros and cons and hopefully others wil comment so that we can have a discussion. I personally feel that neither the listing agent nor buyer agent should negotiate the short sale. There are two legal reasons and two practical reasons … (1 comments)
agent liability: Incest is NOT Best in Real Estate
- 12/06/11 05:07 PM
I had an interesting call today with a short sale agent. The first problem was that I was lead to believe that he was the listing agent. Fifteen minutes into the call, I discover that he is not the listing agent. OK, but this can be a problem because of what transpires. What follows is a textbook situation that can lead to fraud allegations and short sale approval problems. It seems that this particular broker has all of the agency lisitngs placed into his name. He then has another agent that exclusively negotiates the short sale. The rest of the agents … (4 comments)
agent liability: Pet Peeve When Sarching for Real Estate...
- 11/19/11 11:49 AM
I have been looking for a new place in the Giant Litter Box (Las Vegas). I refer to it as that because everyone visits here and takes a dump and leaves....and instead of lush greenery (admittedly difficult in these climes) they have rocks everywhere that look like litter box pellets. Anyway, it has been a beautiful past few days and I was leaving for a business trip to Ukraine and then Thanksgiving with my family in New Jersey. Okay, Okay, I appreciate the sentiment that everyone from Jersey has no right to refer to any other place as the "Giant Litter … (19 comments)
agent liability: A New Twist in Negotiating Short Sales
- 11/07/11 04:28 PM
New twists in negotiating short sales are occurring almost daily. Frustrated by long delays and lack of success in utilizing others, some investors have entered the negotiation arena. The concept is fair and simple: investors want some control over the process and many have taken to negotiating the short sale. Everyone in the industry has an opinion on who should negotiate a short sale. I can say that major lenders (I work as a consulting attorney for two of the largest) do not favor short sales that are negotiated by someone with an interest in the property, or an interest … (6 comments)
agent liability: Freddie Mac and Federal Government Making Short Sales Nearly Impossible
- 11/03/11 09:24 AM
It never seems to get any easier. Short sales have become increasingly more difficult. Wells Fargo for example, has included addenda that require an investor buyer to hold a property for 90 days prior to reselling. This mandate comes from the investor on the note (Freddie Mac). Here is the hypocrisy: Freddie Mac is not the government as many people believe. However, the government (and taxpayers) have a relationship with Freddie Mac and own a sizable chunk of the company. Several states have enacted legislation or already have legislation that prohibits such restrictions. I am going to blog about the topic … (3 comments)
agent liability: It shouldn't Be This Difficult
- 09/17/11 09:47 PM
Grrrrrrrrrrrrrrrrrr..I am negotiating a short sale on behalf of my partner, a real estate investor. It is a cash offer on a vacation home. There have been offers, counter offers and many more details than a typical short sale. We FINALLY get the contracts signed and short sale addenda when the listing agent (the names have been withheld to protect the swine) calls me and states that there is one more thing. He states that the buyer will have to agree that the property be listed in the future for vacation rentals with his agency. He less than subtly suggests that … (8 comments)
agent liability: Fear of 'Fraud" is Ruining TOO Many Workable Transactions
- 07/20/11 10:57 AM
It keeps getting harder and harder to get shorts sales accomplished. It is especially difficult with investors even though they are paying cash in most instances. Investors are more than one-third of current transactions do it does not behoove the industry to make matters more difficult for them.
Lenders have certainly made it more difficult for investors with restrictions in reselling, re-listing, marketing, etc. However, now the listing agents and their brokers are injecting personal feelings, emotions, and LEGAL opinions into the mix and this is REALLY hurting the industry.
Earlier today, I was on the telephone with a … (25 comments)
Over the past couple of years I have observed the rise of the Short Sale. At a recent National Reo Brokers Association function, the President of REOMAC, one of the major default industry trade organizations indicated that 2010 would be the year of the ShortSale... This would be great if there was a way to get short sales negotiated and closed within a reasonable amount … (4 comments)
agent liability: MORE on Flipping, Flopping and Fraud...this has been GREAT!!
- 07/10/11 01:02 PM
We have had great dialog regarding fraud and disclosure and I wanted to follow up on this based upon the GREAT comments that we are entering. This is what Active rain should be....professional dialogue to vet issues and voice opinions (naturally networking is huge too). Much of the discussion relating to fraud has been based on disclosure. Disclosure is a HUGE issue today because the short sale process has escalated the importance of disclosure. This is not only on what TO disclose, but also what NOT to disclose in a short sale transaction. Many have expressed that as long as you … (6 comments)
As a realtor, do you manage any rental properties where the owner is a foreign person? If you do, are you collecting from the GROSS receipts 30% and sending that money to the IRS? If you aren't, you very well may be PERSONALLY and PRIMARILY liable to the IRS for that money, and there is almost no statute of limitations!. I wrote about this in an … (1 comments)
agent liability: Things a Listing Agent Should Never Tell a Short Sale Lender..
- 05/22/11 09:47 AM
There is a disturbing trend in short sales....an investor puts a property uder contract and begins to market tghe property for future sale. Listing agent discovers that there may be a higher offer. They then tell the short sale lender! This is a mistake for valid legal reasons. The listing agent's duty is to the home owner. In telling the short sale lender that there "may" be a higher offer, you are breaching that duty to your client! If the short sale that you submitted is rejected, you are now liable to yoru client because you had no duty to disclose … (2 comments)
Author Bio: Paddy Deighan earned his Juris Doctorate and PhD Paddy consults with taxpayers in regard to tax liens, tax levies, tax levy, offer in compromise, tax debt, tax settlement
There is a lot of discussion regarding the duties of a short sale negotitor. There has always been a lot of dispute on the subject of who should negotiate a short sale. There is a lot of merit to the notion that the listing agent (or buyer’s agent) should negotiate the short sale approval. I work with numerous investors and there have been a lot of problems with this.
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