Is this legal?

NEW -> Contingent Buyer Assistance Program

tulip_IHB

New member
My agent submitted an offered to the listing agent. It is a REO. My agent called to confirmed they recieved the offer via fax, and it was confirmed. My agent go a call back from the listing agent asking is this the best offer? Since they have 4 other offers. Blah blah Blah....my questions is this...can the listing agent not submit our offer to the bank? Can they hold off all offers, and wait to see if someone offer full price so they can submit that offer?
 
I'm not a RE agent, but I'll play one here...





A RE agent is required to present all offers to the seller, regardless of price...<em>but</em>, the seller could tell the agent to only send them offers above a certain amount.
 
Legally, the listing agent represents the bank. If they fail to pass on the offer, the bank has recouse against them, but you do not because they are not your agent. I doubt the listing agent is going to jeopardize their livelyhood by refusing to spend the 30 seconds it takes to send a fax.
 
The listing agent keep asking if this is our best offer? Just short of telling us make the full listing price offer. I told my agent, they can take it or leave it. This is too much of a headache, and I am sure there are more houses will be listing soon.



My agent told me....they are holding offers until they recieved the best best one to submit to the bank. Smoking weeds.
 
<p>Caliguy2699 is correct that all offers have to be presented unless the owner has told the agent not to submit an offer below a certain amount. I would have had that in writing to CMA. </p>

<p>Banks are tough these days. My partner and I finally got our offer accepted on a short sale after 7 weeks dealing with 2 lenders. They want a 2 week close with the bank doing no repairs. Take it or leave it as is. We did get it for 10% below apprasial or about 25% below last closed comp. </p>

<p>Regards</p>
 
xsocal land merchant- We did get it for 10% below apprasial or about 25% below last closed comp.



how did you do that? got any tips? would you want to do another short sale?
 
I have given advice on how to get that type of discount through the loss mit dept. of the bank. Too lazy to search for it though.





The banks are horribly slow, as they do not have the staff to handle the abundance of REOs. You have to be patient, or just climb the ladder of the loss mit dept. My neighbor has an REO listing, he said it took three weeks for them to respond to an offer.





BTW, your agent seems like a slacker. In this market, they should be busting ass to get a deal done. They should have the Tan Man's number on speed dial, and every bank's loss mit manager too.
 
Graphix- i think it is a hit and miss. i have read some of your advice, tried it but it is not working with any success for me. you could be right.... my agent could be slacking cause she keeps trying to tell me to go for an REO cause they are easier then a short sale. even my new boss who is a transplant from Minnesota who wanted to buy a house here in oc is having problem and he knows the asset manager at wells fargo and the REO house belongs to wells. the bank is just overwhelming. they probably have like 2 people handling all this reo coming back to them. i can't wait until they get the process and staff to get it going. you will see some serious price drop cause they will want to move the house quick.
 
Graphrix,



Can we elimniate the listing all together and do directly to the bank with REO property? Forget the listing agent and forget the buyer agent. I am kinda of a control freak and want to do thing my way, at my speed. I am sick of this dog and cat game with " make your best offer, we have multiple offers already."
 
If anyone identifies a property and wants to do a short sale, I can handle the loss mitigation for you for a fee (that the bank pays). It's not that difficult; just time-consuming.
 
Okay... can't sleep. So, I am tired, and will probably be more blunt than usual, but I have gotten to the point where I do not care.





I won't hire an agent, for anything, that will not do/work/try as hard as me. If they don't, then they are fired, because they are useless. I would call the loss mit. dept., if the agent isn't willing to do it. I will call BS, unless I can tell they have really truly tried, and most likely, they haven't. So, screw em, and do it yourself. Call the loss mit dept., and speak with the person in charge. If they seem weak, or can't make a decision, then find out who can. Don't be a dick, be nice, all of these people can come in handy for you, and you what them to answer the phone with, "Hey, what's up graph? How is the bimmer?". You do not want them to think, "Oh... gawd, here is that a-hole again.". They are overwhelmed, let them know, that you know this. Joke with them, have fun with them, and get to know them. Hell, tell them about IHB, and how there is some nutter, who says that the NODs just keep getting worse, and worse. Because they have, and February is looking pretty freakin awful.





So, a line from the movie Boiler Room... "Pick up your skirt, and grab your balls. And, lets make some money!" If you are not having any luck with my advice, watch Boiler Room over and over again, until you can become that line. If you come back and tell me you couldn't do it, or so and so told you to pound sand, then you don't have the guts to do it, and I don't want to hear it. And, if your agent won't do it, fire them, and buy them Boiler Room as way to learn. For gawd sakes, if you want something, and you want it for what you want to pay, then go get it. If your agent isn't willing to do that, then go do it yourself. Now... go out there, and buy a house, buy a house at a step ass discount, if you can't close, then I don't want to hear it. There are plenty of knife catcher forums you can join.
 
Obviously, you've never worked on commission, where the commissioned salesperson decides how much money s/he will make on an hourly basis. Why should a real estate agent put all the time in to do a short sale when s/he can simply pursue a far less labor-intensive type of transaction by which to make money? "Oh, here, Ms. RE Agent, this transaction will result in ultimate income of $14 per hour (short sale) while this one will result in ultimate income of $40 per hour (regular sale)." If I was a RE agent, and you gave even a hint of the attitude you've described here, I'D fire YOU. I don't know the percentage, but not all offers to sell for less than owed are accepted by the bank. I'm working on a file right now (6 weeks we've been at it) that's due to go to Trustee's Sale in four days. Why won't the loss mit rep call me back so we can close this deal? I don't know and, if it goes to Trustee's Sale, I'm not ever likely to find out.



"Call the loss mit dept and speak with the person in charge." You say that as if you've ever done it. It doesn't quite work like that. In addition to other frustrations, hold times of 45-120 minutes are not uncommon. Most people just don't have the stomach for it. If you think you do, I invite you to try it, and then come back with your "grab your balls" speech.



You also seem to think that the loss mit rep cares about or even knows the outcomes of the bank's REO department. They don't, so your "informing" them that "the NODs just keep getting worse, and worse" is meaningless to the loss mit rep.



Some people... < teasing >
 
jbatzmaru, your agent is absolutely, utterly, completely and irrevocably correct: REO offerings are far less troublesome, frustrating and nerve-wracking than pursuing a short sale. I think you should take her advice and stick with REOs. Just because she doesn't want to put in the time to do a short sale doesn't mean she's "slacking."
 
<p>This is a good lesson to the people who think because the market is soft that it is easy to "get a deal". It takes time, energy, and persistence to get through the REO/Short sale maze. On other note on short sales is that the bank cuts the commissions and as SoCalGal notes that people will follow path of least resistsance. Meaning if a client is arrogant or has attitude why would an agent spend hours with banks to get a deal done? </p>

<p>The short sale we completed was with a long time client that appreciated the work and at the end had to go 30% down even at the reduced price. I would not waste my time with newbies unless I knew they were serious and had the ability (read cash and credit scores and motivation) to buy.</p>

<p>There is education to be had on both sides of this downturn as well as money to be made by those with knowledge and patience.</p>

<p>Regards</p>
 
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