Buyer rep on a property past NOD, in Cali

[AgentBill]

Not long ago I was told by an agent that it was very dangerous to represent a buyer on a property where another agent has chased an NOD down and converted it to a listing. The reason why is that the state requires the agent to be bonded, and no one is currently issuing these bonds. I mentioned this to my broker, who said he heard something along those lines as well and had sent in a call to the CAR legal hotline on Friday. But has anyone here heard this?

Bill Field
Century21 Results
Lakewood, CA

[Real Estate Talk]

I'd stay away from it just in case.

[Tim7332]

Not long ago I was told by an agent that it was very dangerous to represent a buyer on a property where another agent has chased an NOD down and converted it to a listing. The reason why is that the state requires the agent to be bonded, and no one is currently issuing these bonds. I mentioned this to my broker, who said he heard something along those lines as well and had sent in a call to the CAR legal hotline on Friday. But has anyone here heard this?

Bill Field
Century21 Results
Lakewood, CA

Bill, I'm fairly certain you don't need to be bonded to list a NOD. They still own the property and I couldn't see why it would be any different. However, I could be wrong.

[Darla]

Not long ago I was told by an agent that it was very dangerous to represent a buyer on a property where another agent has chased an NOD down and converted it to a listing.

Yup, dangerous alright, you probably wont get paid. Run.
Bonded ? never heard that one, however the NOD's have a host of other huge issues here in California to be dealt with.
CAR Legal is the best resorce, hope you get through to them.

Got some clarification from my operating principal. Applicable when dealing with Investor buyers "If a residential property of 1-4 units is occupied by an Owner in Default (an NOD---Notice of Default---a Lender's recorded notice that the loan is in Default), an Investor Buyer must---in the eyes of the law---essentially represent themselves." in addition he states that California law makes it virtually impossible for an Agent to represent an Investor Buyer on properties discussed above, yet provides for very stiff penalties for the Seller, Agents and Brokerages if it happens.
Apparently if the investor buyer is treated as a referral to the listing office, selling office commison can be paid.
Still, CAR Legal is the place to go for questions.

[Jnazareno]

Im seeing a lot of Foreclosures hitting my market ( Compare the last 4 years before this year - I think I saw 2) right now probably around 150 listings or more...the majority of this are Short Sales since the bank realized it's better to short sale now and hopefully get a buyer asap or end up losing more money..

I haven't heard of anyone not getting paid for commission even if it's a short sale..
banks banks dont wanna mess with Realtors! we bring in the buyers!

[highdesertagent]

what is NOD explain more

[Darla]

NOD=Notice of Default=a Lender's recorded notice that the loan is in Default.

[highdesertagent]

some banks do not pay agents you must know what you are doing and it is possible to earn a flat 10k on a short sale, filing a nod is just the beginning,,, these are very easy just work with the banks

[Jnazareno]

Not long ago I was told by an agent that it was very dangerous to represent a buyer on a property where another agent has chased an NOD down and converted it to a listing.

in CA, I believe it's the law or DRE requirement that no buyer agent could represent a buyer in buying a foreclosed home (dont quote me on this).. what you could do is
refer it to the listing agent, get the referal fee..25-35%

to learn more, I recommend that you call a foreclosure attorney/trustee or even your title company (a few sales rep are actually good at foreclosures)

John

[highdesertagent]

i currently have a listing that is in forclosure i also have the buyer it is goung very smooth i am working with the banks adn helping the bank and the buyer to arrange an AITD.. as long as the seller has no gain you can represent the buyer as an agent and cooperate with the bank for your commission.. you can also have the buyer pay your commisison just as they would deposit ernest funds in escrow.. all paperwork is being sumbmitter thru escrow..