Help. Can a property management company lease a property for 12 months knowing that there is a Trustee Sale Date & the property is listed for sale? I have a short sale listing in Arizona that I have finally received an approval from the lender and escrow has been opened. The seller had a tenant in the property when I first listed the property, but moved out shortly. Four months have gone by and I found out yesterday that the home was just leased out for 12 months. We are suppose to be closing escrow on the property in two weeks. The property management company states they had an agreement with the seller to go ahead and rent the property. However, the seller states they were told only month to month and this was prior to us finally receiving an acceptance on the short sale. The seller did not even know the property had been rented yesterday. The property management entered the home, and changed the locks. Not sure how they got the key, because the locks were changed by the seller's lender and I was given the new key. I don't see how a property management company can lease a property for 12 months to tenants knowing that the property is in foreclosure and could be foreclosed on at anytime. I have requested several times for the sale date to be postponed. The property management says they did nothing wrong. If the property does not close escrow at the end of the month because there are tenants there, then it will foreclose. The seller loses, but the tenants now have rights to stay. Doesn't seem right to me. Is this fraud or against the law?
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Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
I would call your state legal department for the division and get with your board about filing ethics complaints if they were fully aware this property was in foreclosure. It is IMPERATIVE to disclose (here anyways) these days.
Oct 02, 2009 05:39 AM
Realty Choice - Springfield, MO
I guess I am missing something. The seller had an agreement with the property management company? Then, I guess you need to find out what their agreement actually said to see if they management company did anything wrong.
Oct 03, 2009 07:54 AM
Warm Weather Real Estate - Mesa, AZ
480-529-2936, Warm Weather Real Estate
Donna,
Hope things are going well for you in Arizona City!!
I emailed you a private response to this article from my gmail address.
Take care,
Bob Marsh, BobYourREALTOR@gmail.com
Jun 04, 2010 12:02 PM
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