Should I tell my Realtor that my home is going into foreclosure?

By
Real Estate Agent with Leo Lawrence Real Estate

I received a call from my broker today, telling me that the bank now owns '123 Main Street', which I have had listed for sale for four months. What? How can that be? I spoke to the seller less than a week ago. We discussed pricing changes and possible dates for an open house. There was never any mention of the impending foreclosure, although the seller surely knew about it.

From the seller's point of view, I can see how they might justify their nondisclosure: "But we were hoping we would get a contract before then." I can also understand the embarrassment that one might feel. However, I could have helped these people.

In the current market, many Realtors have gained experience working with short sales. A short sale is when a mortgage company agrees to accept less than is owed on a mortgage as full payment of the debt. In Missouri, most lenders report the account as 'settled' to the credit bureaus, salvaging the borrower's credit and saving them from foreclosure.

As a seller, sticking your head in the sand or keeping your Realtor in the dark doesn't do anyone any good. These sellers almost certainly would have qualified for a short sale. Instead, their credit is ruined and they lost their home. The bottom line is this: FULL DISCLOSURE to your agent. Let them help you, or at least try. If you're facing foreclosure, you have nothing more to lose.

close

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Topic:
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Location:
Missouri
Tags:
real estate agent
foreclosure
mortgage
short sale
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Rainer
232,295
Sara Woolford & Steve Golson, ALHS
iTexas Realty Co. - San Antonio, TX

Hi Jennifer -

That's interesting.  How did your Broker get the information?

--Sara

Mar 18, 2010 03:33 PM #1
Rainmaker
158,078
Carol Pease
JP & Associates Realtors - Bastrop, TX
CRS, Broker-Associate 512-721-6320

Jennifer:

I always make it a point to ask before I list the property, then order title work to check to see what is going on.  Checking the foreclosure lists also helps.

Mar 18, 2010 03:34 PM #2
Rainer
9,074
Jennifer Wilton
Leo Lawrence Real Estate - Saint Louis, MO

Sara, the bank called us and sent the paperwork to our office.

Mar 18, 2010 03:40 PM #3
Rainmaker
343,891
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Jennifer, that's sad that they didn't let you know. That is always so frustrating!  I currently have about 25 short sale listings and I call occasionally on the one sI don't have offers on, just to check & see if there is a foreclosure date set.

 

Mar 18, 2010 03:40 PM #4
Rainmaker
158,286
Jonathan Osman
Jonathan and Associates, Inc - Charlotte, NC
Charlotte House Hunter Group

Unreal but sadly common.  I think there's a lot of misinformation about there about short sales and the alternatives to foreclosure, resulting in some sellers making really poor decisions.  A pending foreclosure is a material fact for us here in NC so my team has learned to do a simple title search to find out if our listing is nearing the FC sale and how many liens are on the home.

Mar 18, 2010 05:04 PM #5
Rainer
333,502
Frank Castaldini
Compass - San Francisco, CA
Realtor - Homes for Sale in San Francisco

Sorry to hear about that.  It makes me wonder what I can do to have been information that something like this might be going on.

Mar 18, 2010 05:51 PM #6
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Rainer
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Jennifer Wilton

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