Bank listed a home on MLS as a shortsale, home sold and shortsale offer was approved. Auction.com somehow got the home and using our contract price as their reserve conducted an auction. ?During the auction they repeatedly called our client trying to seduce a bid from them. How can they do real estate business in a state where you have to be licensed? How can they void the MLS agreement and ignore our client? . ?Are we do a commission? ?Since this affects the selling agent, the broker, the attorney, the client. Why sell shortsales? ? ?Any answers or additional questions would be appreciated Thanks
Not to get too picky … but clarifying a few points … the home was not"sold" but rather it was ‘under contract’ pending close of escrow at the lender(s) pre-approved ‘short sale’ price? Correct? Where there multiple lenders involved, who each had to ‘approve’ the short sale, and all ‘go forward’ settlement (e.g. some $ paid to 2nd to ‘go along’) arrangements?
I’ve witnessed more than a few agents who were irate (‘shocked’ would not be too strong) to see a property go to trustee sale (foreclosure) when they felt that all of their ‘ducks were in a row’ to complete the short sale. In most of these situations, quite evidently, at least one of the ‘ducks’ was not in proper alignment. Not to say that you don’t have good reason to be miffed. But this is sadly quite common … albeit less so today versus 2009 through 2012. Market conditions and political/economic pressure on lenders, is moving most to seek out alternatives to foreclosure.
? ? In Florida, foreclosures are handled by the Courts. ?It is a Judicial foreclosure state. ? It sounds like the lender foreclosed, acquired title - and turned their REO over to Auction.com to do their thing in trying to sell properties. ? Auction.com had a contract with the new owner (former lender) to sell. ?
? ? ? The only other thing I can think of is: ?The lender did not foreclose, but told the owner we will only “approve” a short sale if you use our agent “auction.com”. ? That would border on “interference with a?contractual?relationship”. ? While it might not pay to have an atty. sue, it may be that auction.com is working thru a licensed agent in Fl. and you could file a complaint against him/her if he/she is a member of a local board. ??
? ? ? ?I can tell you professional bidders in Ca. simply do not like them. ?
? ? ?WAIT: ?I just re-read your question. ?You said the BANK listed the property. ?That meant they had to be the owner. ?No MLS will accept a listing from a lender in any of the states I know of. ? ?There are tons of reasons why the bank didn’t accept your short sale offer. ? ?A large percentage of short sales still do not go through.
? Why a seller would bother w. a short sale deal when he could sit for free and get $$ in Kash for Keys is beyond me. ?But that wasn’t the question.