With regard to Pre-Foreclosures and Short Sale there is a disclaimer that exists in the Contracts.
The Terms, Conditions, and Purchase Price are subject to Lender Approval.
This means that it is up to the bank, the holder of the mortgage or mortgages, if the home will be allowed to sell as a short sale, how much the home will be allowed to sell for as a short sale, and what other items will be covered, “paid for” by the bank. (closing costs, back hoa, back taxes etc…)
Short Sale Auction available to the highest Bidder. Open house to be held for only two days, Saturday and Sunday. You must be present at the open house to bid on this home. This spectacular property will start bidding at 53% less than current market value.
Most of the above is placed within the “public remarks”. In the MLS there are a couple of narrative fields, the first is information about the home. You will know this as the “words that sell” section of the listing when you are viewing it on Realtor.com and the other Real Estate listing websites.
The second, less known, section is the “confidential remarks” section of the Multiple Listing Contract. This is where the agent will place information related to any hardship, i.e. Short Sale. They will also put how to get the offer to them and any other pertinent information, not fit for public consumption. This is the section where we, as real estate agents, will find the Short Sale Disclaimer. “This property is a short sale, terms, price and commission are all subject to lender approval.”
This particular listing also said not to contact the listing agent for additional information, don’t email, don’t call, don’t attempt to clarify any of the information contained within the listing.
I love to Market and Advertise. I read, listen and watch everything I can get my hands on to help my Sellers Listings sell at the best possible price in any Real Estate Market. I also want to increase the recognition of our Paris911 Brand and to say to the world, “Hey, we are Santa Clarita Realtors – if you want to be here, leave here or move around anywhere – Call My TEAM!!!”
But, I will not use any tactics of deception to do so. We are not those that have additional, attorney drawn up, addenda to add with listing contracts swearing the seller to secrecy. Under the penality of Law Suit if Broken. We also don’t participate in the “bait and switch” real estate model that exists within some Real Estate Publication Print. We are not alone in this manner of operation – There are a lot of GREAT Realtors that work in the Santa Clarita Valley and Beyond at Many Different Real Estate Companies – If you are working with one of those – STAY LOYAL!
You have a home in The San Fernando Valley, Valued currently at $700,000. You now have this Real Estate agent advertising this home at 1/2 of the value, $350,000. He call’s it an Auction and only allows viewings at a two day open house. He places the restriction, “Must attend the open house to bid on the home”. That will involve registration by everyone attending the “Short Sale Open House” and more sinisterly will involve registration and the giving of personal information by those that are not represented at the time of viewing.
The Problem? This is a Short Sale, Subject to Lender Approval. Even is someone is the highest bidder, they will no longer be at the 50% of Current Market Value any longer. Have you ever watched an auction on TV or in person. Remember the time when the man bought the phone cord that belonged to a dead celebrity for $500.00. The same cord would have been able to be purchased at Walmart for $6.97?
Additional Problems: This home will now populate the World Wide Web, the Internet in all of it’s discounted glory. Dad used to say, “if it is too good to be true…..” The bigger problem is that the unsuspecting home buyer will not know what is going on and might get “trapped” into a relationship with an agent that has not been forthcoming and honest.
BTW, it says not to call the Listing Agent or Listing Agent’s Office for more information. I have left three messages and will leave more today. Another Real Estate agent cannot tell a Representative of Buyers, not to call for more information that has been requested by our Clients. The Client is the “unprotected and unlicensed” part of the Real Estate Purchase Scenario. If they want information and are represented by a Realtor – Said information shall be obtained and conveyed.
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