Short Sales

[Onnafaye]

To be clear the law is written that the agent would have to post a bond that is almost impossible to get between the price and qualifications. Not all agents follow rules or laws ,so who knows how many people will find themselves in trouble with this one. I can say I run a clean business and I will not be caught in that mess!

[gregharaksin]

I am told that the bond can't be purchased by agents in CA. many agents may find themselves in trouble.

[Portland Real Estate Guy]

Thats crazy. No wonder California market is in trouble. They should at least let the investors pick up the properties and rent them out. Not to many regular buyers will qualify for such a high prices with the new stricter mortgage guidelines.

Its a little different where I live. Good luck.

[OCTeam]

Yes, an agent can't double-end a deal that's in foreclosure, and there is a law against selling to someone without intent to occupy.

Oops...not quite correct.

An invester can buy the property, however a real estate agent cannot represent a buyer who is an investor to purchase a short sale property if all of the following four statements are true:

• The home qualifies as the seller's personal residence.

• The property is a single family home or 2 to 4 units.

• A Notice of Default (NOD) has been filed in the public records against the property.

• The investor buyer does not intent to/will not occupy the property.

There is a CAR Form NODPA, that the investor signs that clearly explains that neither listing agent or referral licensee represents the buyer in the transaction. The investor buyer has to fill out and negotiate his own contract. The referral licensee (no longer buyers agent) get the commission.

If one of the above 4 statements if false, an agent can represent the buyer.

[Onnafaye]

in Calif. " If a residential property of 1-4 units is occupied by owner in NOD an Investor Buyer must ... to follow the law...represent themselves." No agents!
So you can represent the buyer and the seller on a short sale, IF the buyer intends will owner occupy the property. I am not a lawyer so go get clarification if you are in this state of Calif. I understand the penalties for this violation are stiff for everyone who is involved. So all the agents in this kind of transaction will be facing penalty.

[OCTeam]

The penalty is more than stiff... they will lose their license.

[Jnazareno]

CA really need to make some adjustment to the Foreclosure Law..Buyer needs to be represented in some form..or else it's like big banks and little people and little people aren't that well protected buying foreclosed homes esp if they are first time homebuyers..

I know a few people who occupies the home a few weeks, then buys another foreclosed home, then more and more, so that clause needs to be change 2

[gregharaksin]

The penalty is more than stiff... they will lose their license.

possible jail time too??

[Discover Davis Homes]

Yes, an agent can't double-end a deal that's in foreclosure, and there is a law against selling to someone without intent to occupy.

Technically, the California law states an agent can not represent an investor on a house with a notice of default filed unless the agent has a special bond. No one sells the bond therefore, no agent can represent an investor if the property has been owner occupied. This is actually the subject of the blog post in my signature that I made a couple of months ago. I really need to update my blog but that is a different topic.

[flatfeerealty]

I guess who ever is good at getting the short sales and selling them is going to make good money these days.