anything wrong with this SFH in 92011 ?

[sdrealtor]

niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?

[sfexporter]

[quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up.

[sfexporter]

[quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up.

[sfexporter]

[quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up.

[sfexporter]

[quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up.

[sfexporter]

[quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up.

[urbanrealtor]

[quote=sfexporter][quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up. [/quote]

Maybe I am misreading this but it does not sound like its unethical dealing.

1: I am not clear that the offer the LA is working is his own buyer. Perhaps you have inside knowledge?

2: It is standard to price shorts super low to attract offers and then leave them active until written lender approval. This is permitted per the MLS. The mandatory remarks (which are not visible in public mls portals ) indicate that he is working an offer with tentative seller acceptance.

3: As an agent who lists short sales, I consider it unlikely to point of implausibility that any deal gets “slipped by” the bank.

So SD, I don’t see the ethical lapse here. I am not saying it does not exist but could you show me what you are seeing?

Sfexport: If a property is a shortsale, the listing price is almost irrelevant. Being 50k over or 50k under does not mean a deal. The bank has to approve everything and the seller does not care because he is getting nothing either way.
Putting that differently, the incentive structure is completely fucked.
Also, regardless if a deal is already working, and regardless of what the listing status is, the agent has to make the seller aware of it but the seller (usually based on the listing agent’s advice) will decide which offers go to the lender.
Finally, nobody with any brains makes an offer with no contingencies. The notable exception being trustee auctions, and we see the lack of information and safety clauses reflected in the prices there (often 20-30% below market).

[urbanrealtor]

[quote=sfexporter][quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up. [/quote]

Maybe I am misreading this but it does not sound like its unethical dealing.

1: I am not clear that the offer the LA is working is his own buyer. Perhaps you have inside knowledge?

2: It is standard to price shorts super low to attract offers and then leave them active until written lender approval. This is permitted per the MLS. The mandatory remarks (which are not visible in public mls portals ) indicate that he is working an offer with tentative seller acceptance.

3: As an agent who lists short sales, I consider it unlikely to point of implausibility that any deal gets “slipped by” the bank.

So SD, I don’t see the ethical lapse here. I am not saying it does not exist but could you show me what you are seeing?

Sfexport: If a property is a shortsale, the listing price is almost irrelevant. Being 50k over or 50k under does not mean a deal. The bank has to approve everything and the seller does not care because he is getting nothing either way.
Putting that differently, the incentive structure is completely fucked.
Also, regardless if a deal is already working, and regardless of what the listing status is, the agent has to make the seller aware of it but the seller (usually based on the listing agent’s advice) will decide which offers go to the lender.
Finally, nobody with any brains makes an offer with no contingencies. The notable exception being trustee auctions, and we see the lack of information and safety clauses reflected in the prices there (often 20-30% below market).

[urbanrealtor]

[quote=sfexporter][quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up. [/quote]

Maybe I am misreading this but it does not sound like its unethical dealing.

1: I am not clear that the offer the LA is working is his own buyer. Perhaps you have inside knowledge?

2: It is standard to price shorts super low to attract offers and then leave them active until written lender approval. This is permitted per the MLS. The mandatory remarks (which are not visible in public mls portals ) indicate that he is working an offer with tentative seller acceptance.

3: As an agent who lists short sales, I consider it unlikely to point of implausibility that any deal gets “slipped by” the bank.

So SD, I don’t see the ethical lapse here. I am not saying it does not exist but could you show me what you are seeing?

Sfexport: If a property is a shortsale, the listing price is almost irrelevant. Being 50k over or 50k under does not mean a deal. The bank has to approve everything and the seller does not care because he is getting nothing either way.
Putting that differently, the incentive structure is completely fucked.
Also, regardless if a deal is already working, and regardless of what the listing status is, the agent has to make the seller aware of it but the seller (usually based on the listing agent’s advice) will decide which offers go to the lender.
Finally, nobody with any brains makes an offer with no contingencies. The notable exception being trustee auctions, and we see the lack of information and safety clauses reflected in the prices there (often 20-30% below market).

[urbanrealtor]

[quote=sfexporter][quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up. [/quote]

Maybe I am misreading this but it does not sound like its unethical dealing.

1: I am not clear that the offer the LA is working is his own buyer. Perhaps you have inside knowledge?

2: It is standard to price shorts super low to attract offers and then leave them active until written lender approval. This is permitted per the MLS. The mandatory remarks (which are not visible in public mls portals ) indicate that he is working an offer with tentative seller acceptance.

3: As an agent who lists short sales, I consider it unlikely to point of implausibility that any deal gets “slipped by” the bank.

So SD, I don’t see the ethical lapse here. I am not saying it does not exist but could you show me what you are seeing?

Sfexport: If a property is a shortsale, the listing price is almost irrelevant. Being 50k over or 50k under does not mean a deal. The bank has to approve everything and the seller does not care because he is getting nothing either way.
Putting that differently, the incentive structure is completely fucked.
Also, regardless if a deal is already working, and regardless of what the listing status is, the agent has to make the seller aware of it but the seller (usually based on the listing agent’s advice) will decide which offers go to the lender.
Finally, nobody with any brains makes an offer with no contingencies. The notable exception being trustee auctions, and we see the lack of information and safety clauses reflected in the prices there (often 20-30% below market).

[urbanrealtor]

[quote=sfexporter][quote=sdrealtor]niy,
that one is a very underpriced short sale lisitng. the agent put it under contract with his own buyer and appears to be trying to slip it past the lender. Shall we say this is of questionable ethiics?[/quote]

sdrealtor,

Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted? Do you see this often during short sale or normal RE transactions? If yes, what are the disciplinary fines/penalties for the listing brokers?

If this type of shitty or unethical tactics do happen, I hope the fed would intervene to clean it up. [/quote]

Maybe I am misreading this but it does not sound like its unethical dealing.

1: I am not clear that the offer the LA is working is his own buyer. Perhaps you have inside knowledge?

2: It is standard to price shorts super low to attract offers and then leave them active until written lender approval. This is permitted per the MLS. The mandatory remarks (which are not visible in public mls portals ) indicate that he is working an offer with tentative seller acceptance.

3: As an agent who lists short sales, I consider it unlikely to point of implausibility that any deal gets “slipped by” the bank.

So SD, I don’t see the ethical lapse here. I am not saying it does not exist but could you show me what you are seeing?

Sfexport: If a property is a shortsale, the listing price is almost irrelevant. Being 50k over or 50k under does not mean a deal. The bank has to approve everything and the seller does not care because he is getting nothing either way.
Putting that differently, the incentive structure is completely fucked.
Also, regardless if a deal is already working, and regardless of what the listing status is, the agent has to make the seller aware of it but the seller (usually based on the listing agent’s advice) will decide which offers go to the lender.
Finally, nobody with any brains makes an offer with no contingencies. The notable exception being trustee auctions, and we see the lack of information and safety clauses reflected in the prices there (often 20-30% below market).

[SD Realtor]

“Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted?”

That is an extreme example but this sort of stuff seems to be happening more and more. I have seen it not just with shorts but with REO sales as well. To me this is an extreme violation of the fiduciary obligation that a listing agent has. I have seen it take other forms, for instance for some properties that are priced aggressively as REO, the listing agent simply picks one offer and sends it in rather then countering everyone, (which may be a pain in the ass) but would yield a more competitive landscape and ultimately get the seller more money.

I had a recent client who submitted an all cash offer at list price for an reo with a 21 day escrow at list. The LA didn’t counter, didn’t call back and someone else got the property. My buyer was prepped to go up plenty more. When I asked the agent why they didn’t counter everyone at highest and best he even said, ” … well you know how it is, we are just trying to move properties as soon as we can so you should have submitted your highest and best offer off the bat. ” I commented that he had left money on the table for his client he said that my point was speculative at best.

So it goes…

Don’t expect the FDIC or any other entity to do anything about it. My client did send a letter to the lender selling the home but that will not do anything. A complaint to the DRE can be made and if you have a clearly documented case, like the example of a 50k differential above then yes some sort of disciplinary action would most likely be taken.

[SD Realtor]

“Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted?”

That is an extreme example but this sort of stuff seems to be happening more and more. I have seen it not just with shorts but with REO sales as well. To me this is an extreme violation of the fiduciary obligation that a listing agent has. I have seen it take other forms, for instance for some properties that are priced aggressively as REO, the listing agent simply picks one offer and sends it in rather then countering everyone, (which may be a pain in the ass) but would yield a more competitive landscape and ultimately get the seller more money.

I had a recent client who submitted an all cash offer at list price for an reo with a 21 day escrow at list. The LA didn’t counter, didn’t call back and someone else got the property. My buyer was prepped to go up plenty more. When I asked the agent why they didn’t counter everyone at highest and best he even said, ” … well you know how it is, we are just trying to move properties as soon as we can so you should have submitted your highest and best offer off the bat. ” I commented that he had left money on the table for his client he said that my point was speculative at best.

So it goes…

Don’t expect the FDIC or any other entity to do anything about it. My client did send a letter to the lender selling the home but that will not do anything. A complaint to the DRE can be made and if you have a clearly documented case, like the example of a 50k differential above then yes some sort of disciplinary action would most likely be taken.

[SD Realtor]

“Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted?”

That is an extreme example but this sort of stuff seems to be happening more and more. I have seen it not just with shorts but with REO sales as well. To me this is an extreme violation of the fiduciary obligation that a listing agent has. I have seen it take other forms, for instance for some properties that are priced aggressively as REO, the listing agent simply picks one offer and sends it in rather then countering everyone, (which may be a pain in the ass) but would yield a more competitive landscape and ultimately get the seller more money.

I had a recent client who submitted an all cash offer at list price for an reo with a 21 day escrow at list. The LA didn’t counter, didn’t call back and someone else got the property. My buyer was prepped to go up plenty more. When I asked the agent why they didn’t counter everyone at highest and best he even said, ” … well you know how it is, we are just trying to move properties as soon as we can so you should have submitted your highest and best offer off the bat. ” I commented that he had left money on the table for his client he said that my point was speculative at best.

So it goes…

Don’t expect the FDIC or any other entity to do anything about it. My client did send a letter to the lender selling the home but that will not do anything. A complaint to the DRE can be made and if you have a clearly documented case, like the example of a 50k differential above then yes some sort of disciplinary action would most likely be taken.

[SD Realtor]

“Are you saying the listing broker does not have to show your offer to the bank even if your solid offer with little or no contingents is 50K more the one he or she submitted?”

That is an extreme example but this sort of stuff seems to be happening more and more. I have seen it not just with shorts but with REO sales as well. To me this is an extreme violation of the fiduciary obligation that a listing agent has. I have seen it take other forms, for instance for some properties that are priced aggressively as REO, the listing agent simply picks one offer and sends it in rather then countering everyone, (which may be a pain in the ass) but would yield a more competitive landscape and ultimately get the seller more money.

I had a recent client who submitted an all cash offer at list price for an reo with a 21 day escrow at list. The LA didn’t counter, didn’t call back and someone else got the property. My buyer was prepped to go up plenty more. When I asked the agent why they didn’t counter everyone at highest and best he even said, ” … well you know how it is, we are just trying to move properties as soon as we can so you should have submitted your highest and best offer off the bat. ” I commented that he had left money on the table for his client he said that my point was speculative at best.

So it goes…

Don’t expect the FDIC or any other entity to do anything about it. My client did send a letter to the lender selling the home but that will not do anything. A complaint to the DRE can be made and if you have a clearly documented case, like the example of a 50k differential above then yes some sort of disciplinary action would most likely be taken.

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