I have recently been questioning the legality of Listing Agents and their respective Brokers to list homes below a Seller's payoff (or not having the funds to close) as a fraudulent act. I strongly believe that Short Sales must be approved by the Mortgagee in writing before it is listed. I just came across a home where it is listed so far below market that no bank would have approved such a short sale, in fact, the listing agent disclosed that the price was basically made up to "induce" buyer's to make an offer before it went to the courthouse steps!
It is illegal for Realtors and Brokers to falsely advertise a listing so why shouldn't be illegal to advertise a price without the the owners approval? I cannot believe that agents take listings from desperate Sellers expecting a miracle to happen. Nine out of Ten times the owner is so far behind on the mortgage that foreclosure proceedings are unavoidable (as is the case of this listing) and that this is merely an exercise to get buyers (new clients). This is not the first time I have seen this, just the most blatant. I do appreciate those agents who actually have approval but those who are falsely guiding Sellers into listing their house for an outrageous price to just make a buck should be sanctioned. This whole thing is disgusting and should be against the law- period.
Hell, if it is illegal for me to list a home without the owner's permission then it should be illegal for me to list a home for less than what the owner can write a check for at closing. Now, if the bank has given the listing agent something in writing that says hey, you can list the house at such and such price and we will then consider an offer, then fine, but the majority of these are just numbers someone is pulling right out of thin air. It seems to me that once where Agents were contributing to the increase in property values they are now contributing to the decrease in property valuations in favor of making a quick buck and getting new business.
I appreciate your comments and if I am wrong, please enlighten me. I would think that I am not the only one appalled by this new practice.
Rebate Realty Pros, LLC
GA License# 183688
Licensed Since 1997