I suppose it depends on who you are asking. Those who were slighted in the last Foreclosure and Real Estate Owned cycle, would probably say “yes it is”.
However, those who got what they wanted, did so by jumping through a lot of hoops, and probably encountering the “not so ethical” foreclosure realtor.
It was a time when the big banks were hiring the local Real Estate agents to sell their distressed properties to the buyers that would buy them.
We had seen many a property that had been “torn up”, almost beyond repair, by the property owner as they were being forced through an eviction.
One of the paramount questions that kept coming up was, “Why can’t the bank sell me back the home at the discounted price where they are going to market it for?”
That question has to do with the “rules and regulations” within the lending world.
But in actuality, I suppose they could have if the rules were to have been broken, or at least bent.
The fact of the matter is it did not happen. The Banks had their ways and regulations that followed.
As did the realtors they hired to sell their properties that were categorized as REO – Real Estate Owned.
We had many a person want to use us specifically due to us being the listing agents. They thought there was an edge in doing so.
In an imperfect world, there may have been. But due to the corruption that had been felt by the banks, they required more verification, if we were approaching them with our representing the buyer.
In fact, they needed to step up the verification of our representation to their management level to ensure another set of eyes were on the process.(If you know the banks, the Asset Managers don’t want to have to talk to their managers.)
Why – because some of the “unethical” real estate agents were “round filing” the offers from other agents due to them not being able to “double dip” in commission.
After a time, and a series of “angry” phone calls from people that felt as if they had been wrongly represented, the banks changed their approach to the “commission” thing.
Most of the big banks had decided to only pay a little bit more if the buyer was represented by their listing agent. In the end, the “little bit” was not worth the double exposure legally by the listing agents.
All in all, there were some interesting games. Sort of the same with regard to the real estate relocation of today.
But, Real Estate Relocation is a whole other story 🙂
Thanks for listening to our Daily Foreclosure and Real Estate broadcast for Santa Clarita Real Estate.
I’m Connor MacIvor with REMAX of Valencia and I’m very proud to be of service.