These are trying times for real estate agents and the investors that they work with. There are a horde of misinformed and down right malicious people who place a cloud of deception over the legitimate business people seeking to help home sellers avoid foreclosure. Recent media attention to those not willing to do business ethically has certainly kept the rest of us on our toes. Staying on top of local, state, and federal laws is crucial to staying on the right side of business, but the most important tip on avoiding both civil and criminal courts is – DISCLOSURE.
I must assume that anyone reading this article intends to conduct business using the HELP acronym … Honest, Ethical, Legal and Provide full disclosure to all parties. However, even those of us who run a tight ship may wind up being sued or accused of preying on those we truly seek to assist. To place yourself in the best position to defend your honorable intentions, DISCLOSE EVERYTHING that you do to every single party involved.
As a short sale investor my disclosures include letting the seller, the lender, and agents know that I intend to do or will do certain things, including making a profit either immediately or in the future. All parties know that my short sale negotiations may not be successful. There is a laundry list of additional disclosures that have been drafted by my attorney and you may want to have your attorney do the same on your behalf. When all is said and done, being 100% upfront with everyone involved is crucial.
Although it may seem that short sale investing has taken a turn for the worst for the investor, I believe it to be just the opposite. For those of us play by the rules and go above and beyond in our dealings with short sale home owners, we are poised to be successful as an investor.
Staying current on laws affecting our business is the best way to avoid claims of fraud. We’ve put together some really informative videos on keeping your business dealings between the lines. You may also visit, www.MikeBridges.info/agentvideos.
To your success,
Mike Bridges
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