Realtor Conflict ! How 2 Deal With Them?

I have owner of property on my side and will do anything. Her realtor just put a contract in on a s/s is there anything I can do to work the deal and have ownership? How are you working with the realtors ?

This can get complicated, and there's too much to write to do it all at once.

Be mindful when approaching listing agents who are unfamiliar with short sales or the methodology we use that they can easily feel threatened. Keep things simple and provide choices. If the agent is not cooperative, move on to the next lead. If the agent is open to working with you, complete the option contract and file the notice. Once the BPO is completed, the original listing agreement with the seller will be cancelled, and addendum to the listing agreement will be written attached to the new listing agreement will be signed. The addendum will reference the cancelled agreement so that the agent and broker know that they will get paid after the transaction closes. Once the BPO value is returned and the bank has made a counteroffer, the listing price may be adjusted.
If agents are reluctant, it’s okay to adjust slightly higher, but make sure you leave room for a spread.

Agent Referral: if the house is already listed with an agent, we ask agent to drop asking price 10% below FMV to drive buyers and influence the BPO. Comps, repairs, how many houses are on the market, how many are in foreclosure ––all need to be used to justify offer. Pre-BPO leave the house in the name of the seller until after the BPO appointment has been completed. When the BPO agent does their evaluation they will go to the MLS. By keeping the property listed with the seller you will avoid any undue concern by the lender as to why the seller is not on the listing agreement. The bank wants to see that the seller owns the property and is trying to sell it. After BPO, the original listing agreement is cancelled and a new one created with investor as seller.

Some listing agents will be uncomfortable removing the listing from the original seller, drafting a new listing agreement and doing a pocket listing. In this situation the property may stay active on the MLS, but the list price needs to drop to Fair Market Value or just below. (Remember, FMV is what the house would sell for in 2-3 weeks.)


[addsig]

That was helpful ? I am completing a option contract and filing what notice? How do you get ownership of the property from the seller after the BPO is done?

FMV is what a house will sell for within the average DOM of a particular market. When a bpo order is requested for a 30 day sale it's called a "30 day quick sale" value. Unless the local market has a 30 day DOM.
This is from an agent who's done hundreds of bpos.
Jim

I just went through the board of review process on two properties I felt were assessed too high. One I had just purchased for $29k, taxes were based on a FMV of $86K. This meant the taxes were half again as much as my mortgage payment. The other property I bought for $35k, taxes were based on a FMV of $70K.

Both properties were bought off of the MLS, both had been listed for some time with no offers and then had the price reduced. One was an REO and the other an estate. In my opinion the fact that they had been listed on the MLS for some time with no offers indicated that what I paid was FMV- it wasn't some inside deal, anyone could have bought them for that price and no one else wanted to.

To make a long story shorter, I just got word from the board of review that my petition had been denied on both properties. Municipalities are very reluctant to reduce their tax base and so choose to ignore a declining market. To quote an assessor, "Just because you stole the property doesn't mean that that is the fair market value".

Since I am working on a house that is only a few blocks from the assessor's office, naturally the next step is an appeal...

Chris