Area Foreclosures

I think I understand now. Thanks for the time you put in.

So, Realtors don't have to disclose everything they know about the property and it's Title if it does not put the property in a light most condusive to gaining an offer.

No, you don't understand.

I'll give you one last example to clear it up.
Let's say the listing Realtor lists a normal property (not a short sale) at a price of $300,000. Mrs Seller tells the listing Realtor that she is willing to take $275,000 for the house.

The Listing Realtor has a customer, Mr Buyer, who he tells about the house. Mr Buyer asks the Realtor, "How much do you think Mrs Seller will take?"

The Realtor, acting as a Transaction Agency, cannot disclose that information, which is privileged, unless the seller states otherwise in writing. THAT is the type of disclosure which a Transaction Broker cannot disclose. ALL material facts which may affect the buyers purchasing decision, MUST be disclosed. If the Realtor knows that roof leaks, but the seller just had the ceiling freshly painted to cover the stain, but didn't repair the leak, that would be an example of a material fact which must be disclosed.

Hope that helps. You are not alone in your confusion. I'm sure many people have no clue. I think Agency Disclosure has always been confusing even to most Realtors.

BTW, a Realtor is no longer required to disclose if the Realtor knows that a suicide took place in the property. That was not always the case.

One final note on this thread for the evening:
In each of the three types of Agency in Florida, the first rule is:
[SIZE=-1]1. Dealing honestly and fairly

That even includes the NON-Representation Agency. That is a Florida Statute, not just some Realtor Code of Ethics, so it applies to all real estate agents in Florida. (Only one in four real estate agents in Florida are Realtors, which have a Code of Ethics which they must follow.)

I would guess that this ([/SIZE][SIZE=-1]1. Dealing honestly and fairly)[/SIZE][SIZE=-1] is why FL Assoc. of Realtors' lawyers believe that if a Realtor may be held accountable if he or she lists the property at a price less than what he or she knows the lender will accept. Prime example is the $5million (that is what the seller paid) short sale home which WAS listed at $10,001 in Four Mile Village.
[/SIZE]

One final note on this thread for the evening:
In each of the three types of Agency in Florida, the first rule is:
[SIZE=-1]1. Dealing honestly and fairly[/SIZE]

[SIZE=-1]That even includes the NON-Representation Agency. That is a Florida Statute, not just some Realtor Code of Ethics, so it applies to all real estate agents in Florida. (Only one in four real estate agents in Florida are Realtors, which have a Code of Ethics which they must follow.)[/SIZE]

[SIZE=-1]I would guess that this ([/SIZE][SIZE=-1]1. Dealing honestly and fairly)[/SIZE][SIZE=-1] is why FL Assoc. of Realtors' lawyers believe that if a Realtor may be held accountable if he or she lists the property at a price less than what he or she knows the lender will accept. Prime example is the $5million (that is what the seller paid) short sale home which WAS listed at $10,001 in Four Mile Village. [/SIZE]

All right, let me be sure I understand this.....

I'm building a home and selling it for 1.4. My neighbor, who's a Realtor, advertises his listing in the MLS for 850 despite a mortgage payoff of 1.3. That Realtor has no clue if the bank will accept less than the full mortgage amount. It's o.k. with the Realtor's Association that he advertises the teaser price for his home?

I don't know how do say it differently than I've been saying it. ECAR doesn't tell the Realtor how to market the property, as long as the Realtor is within the rules of ECAR. Marketing the property includes pricing.

If an agent isn't dealing honestly and fairly, report him or her, with your proof, to the Florida Real Estate Commission.

You are totally missing the fact that in a short sale, the sales price will be less than the note payoff, and the lender, the seller, the Listing Agent, the Selling Agent, and the buyer are aware of this. (BTW, you don't pay off the mortgage, you pay off the "note.") The only catch is that the lenders haven't been disclosing the amount they are willing to accept, hence the need for the Short Sale Addendum to the Sales Contract, which states that the contract is contingent upon lender approval.

All right, let me be sure I understand this.....

I'm building a home and selling it for 1.4. My neighbor, who's a Realtor, advertises his listing in the MLS for 850 despite a mortgage payoff of 1.3. That Realtor has no clue if the bank will accept less than the full mortgage amount. It's o.k. with the Realtor's Association that he advertises the teaser price for his home?

Maybe a better question to ask is "do I really want to build a home for 1.4 when the market price is at best 850?" No seller or Realtor pursues short sales for fun; they do it in an effort to get the property sold. Believe me, no one's leaving money on the table in these transactions.

I don't know how do say it differently than I've been saying it. ECAR doesn't tell the Realtor how to market the property, as long as the Realtor is within the rules of ECAR. Marketing the property includes pricing.

If an agent isn't dealing honestly and fairly, report him or her, with your proof, to the Florida Real Estate Commission.

You are totally missing the fact that in a short sale, the sales price will be less than the note payoff, and the lender, the seller, the Listing Agent, the Selling Agent, and the buyer are aware of this. (BTW, you don't pay off the mortgage, you pay off the "note.") The only catch is that the lenders haven't been disclosing the amount they are willing to accept, hence the need for the Short Sale Addendum to the Sales Contract, which states that the contract is contingent upon lender approval.

And you completely missed my point.

If the Realtor has no pre-approved short payoff then they shouldn't advertise a ficticious price. They should be advertising the mortgage balance minus any reduction the Owner is willing to absorb by way of cash at closing or other provision.

Maybe a better question to ask is "do I really want to build a home for 1.4 when the market price is at best 850?" No seller or Realtor pursues short sales for fun; they do it in an effort to get the property sold. Believe me, no one's leaving money on the table in these transactions.

If what you said were actual I would agree 100%. I'm talking about a Realtor advertising a property for less than it has ability to sell for. How is it legitimate to advertise a price that you have no ability to actual sell for?

And you completely missed my point.

If the Realtor has no pre-approved short payoff then they shouldn't advertise a ficticious price. They should be advertising the mortgage balance minus any reduction the Owner is willing to absorb by way of cash at closing or other provision.

If the seller could absorb the deficiency, it wouldn't be a short sale.

It sounds like you don't think sellers should be able to short sale their property, and that is an entirely different topic. Actually, this discussion is a bit off from the original thread topic, so let's take this thread back to "Area Foreclosures," and if you wish, start a new thread on short sales or pricing. You can do a multi-quote and post all of the pertinent posts from here, to that new thread.

If what you said were actual I would agree 100%. I'm talking about a Realtor advertising a property for less than it has ability to sell for. How is it legitimate to advertise a price that you have no ability to actual sell for?

According to FAR attorneys, if you can prove that the Realtor knowingly is pricing it less than the lender will accept, you may have a case. However, since the lenders haven't been telling Realtors their acceptable price, you would be lacking any evidence to support your claim.

*************
From NAR (National Assoc of Realtors):
What is a short sale? "A short sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan," according to the California Association of REALTORS?.

I created the new thread on Short Sale Pricing Discussion.

Now back to foreclosures...

Someone told me it costs a bank upwards of $50k to foreclose on a property. Is that accurate?

They wouldn't spend that much on legal fees, but on many properties in South Walton, they would lose more than $50,000 by the loss of equity. If they loaned $400,000 on the house, which is now worth $275,000, they would have a loss of at least $125,000, plus, lawyer fees, brokerage fees to resell the property, plus lost interest during the time between when the former owner stopped making payments to the time when the bank finally sold the house.

I wonder if that number of $50,000 is perhaps the current National average?

No, they were citing that number as the amount the bank had to spend just to go through the process - legal fees, filings, notices, staff time etc. not as the total monetary loss on the deal.

Made me wonder why (if it did actually cost that much) they didn't hire some people to expedite the short sales and save them some $$.

$50K seems low for the national average of a net loss - that would be less than a 15% loss on a $350K house and prices seem off by more than that.

Yes, $50,000 does sound low for a nat. avg of a net loss, but $50,000 seems too high for legal fees and filings. I guess the higher they can make that number, the greater the write off for the bank. If you look up the foreclosures and look at the detailed expenses, legal fees, etc don't typically total close to $50,000.

Yes, the banks spend $30,000-$50,000 to forclose on a property. They do what they call a "savings over foreclosure" analysis to determine whether they should take a short sale or sell it in foreclosure. Of course, they're screwed if they can't get what they think they should from a foreclosure sale. Bobby had a good example the other day of the bank accepting much less than his short sale offer.

There are legal clearinghouses doing foreclosures for $1,450.00. Most of the current foreclosures in Walton County are done this way. The fee has to be determined to be reasonable by the Judge in order to be charged.

Attached is a run of the mill breakdown:

Destin Home Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695734

Miramar Beach Home Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695737

Santa Rosa Beach Home Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695741

30A Home Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695745

Point Washington Home Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695743

Freeport Home Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695748

Panama City Home Foreclosures-
http://panamacitymls.net/BayReports/ListitLib/show_report.aspx?ID=CAR7088124

Destin Condo Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695751

Miramar Beach Condo Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695753

Santa Rosa Beach Condo Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695757

30A Condo Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695758

Panama City Condo Foreclosures-
http://panamacitymls.net/BayReports/ListitLib/show_report.aspx?ID=CAR7088127

Destin to 30A Land Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695767

Destin to 30A Townhome Foreclosures-
http://ecarmls.com/EmeraldReports/listings.asp?ID=7216695762

There are some great foreclosure deals coming on the market. Email me if you would like to know about Destin-30A foreclosures as soon as they hit the market.

Distress Sales resulting from bank foreclosures often represent a great way to get a fantastic deal on a Destin home. It's not easy for the average buyer to find these deals, because you have to keep scouring the paper to see when one comes up. Destin foreclosures have become more prominent with the current problems in the mortgage industry.

If you're the type of person who recognizes what a great deal some of these properties could represent, you will be interested to know about a new free computerized service which automatically searches out and downloads a current list of all such properties day in and day out. When you receive this free, no obligation service, you're automatically plugged in to the most current list of Destin Foreclosure Properties on the market, in the price range and area that interests you. This FREE service every week will save you a lot of research and running around.

Here's how it works. Every week, you will receive a FREE computerized report listing the current Destin foreclosure properties in your desired price range and location. There is no cost for this information, and absolutely no obligation. This insider information, sent to you in an incredibly simple and efficient format, will give you a huge advantage over other buyers in the marketplace. I keep an updated page with links to all of the current Destin Foreclosures at all times.

With the rise of short sales, foreclosures, and distress sales this has become the ultimate way to buy Destin Real Estate. Stay on top of the Destin foreclosures and you will find the best deals around. Whether you are looking for a Destin foreclosure home, a Destin foreclosure condo, or any other Destin foreclosure then you have come to the right price.

If you are interested in foreclosures or distress sales in Destin, Miramar Beach, Sandestin, Santa Rosa Beach, Blue Mountain Beach, Grayton Beach, Watercolor, Seaside, Seagrove Beach, Watersound, Seacrest Beach, Rosemary Beach, or Inlet Beach then let me know. With a large selection of short sales and foreclosures on the market right now it creates the perfect opportunity for those who want to own in this area. These incredible deals won't last forever so the time to act is now!

You can request this free service by simply emailing me at josh@joshmcleanhomes.com

There are some great foreclosure deals coming on the market. Email me if you would like to know about Destin-30A foreclosures as soon as they hit the market.

Distress Sales resulting from bank foreclosures often represent a great way to get a fantastic deal on a Destin home. It's not easy for the average buyer to find these deals, because you have to keep scouring the paper to see when one comes up. Destin foreclosures have become more prominent with the current problems in the mortgage industry.

If you're the type of person who recognizes what a great deal some of these properties could represent, you will be interested to know about a new free computerized service which automatically searches out and downloads a current list of all such properties day in and day out. When you receive this free, no obligation service, you're automatically plugged in to the most current list of Destin Foreclosure Properties on the market, in the price range and area that interests you. This FREE service every week will save you a lot of research and running around.

Here's how it works. Every week, you will receive a FREE computerized report listing the current Destin foreclosure properties in your desired price range and location. There is no cost for this information, and absolutely no obligation. This insider information, sent to you in an incredibly simple and efficient format, will give you a huge advantage over other buyers in the marketplace. I keep an updated page with links to all of the current Destin Foreclosures at all times.

With the rise of short sales, foreclosures, and distress sales this has become the ultimate way to buy Destin Real Estate. Stay on top of the Destin foreclosures and you will find the best deals around. Whether you are looking for a Destin foreclosure home, a Destin foreclosure condo, or any other Destin foreclosure then you have come to the right price.

If you are interested in foreclosures or distress sales in Destin, Miramar Beach, Sandestin, Santa Rosa Beach, Blue Mountain Beach, Grayton Beach, Watercolor, Seaside, Seagrove Beach, Watersound, Seacrest Beach, Rosemary Beach, or Inlet Beach then let me know. With a large selection of short sales and foreclosures on the market right now it creates the perfect opportunity for those who want to own in this area. These incredible deals won't last forever so the time to act is now!

You can request this free service by simply emailing me at josh@joshmcleanhomes.com

Josh, with all do respect, this Thread seems very similar if not redundant to Murray's Blog on SoWal.com I did just e-mail you to get on your list and I hope it's as thorough as it sounds. Good work.

Josh is on the right track. I've also been offering foreclosures along with my HOTSHEET for some time now. I don't think I'd have used the phrase "insider info" as anyone with MLS access can pass it on.

Stay away from shortie and pounce on REO is the tune you want to hum.

Josh is on the right track. I've also been offering foreclosures along with my HOTSHEET for some time now. I don't think I'd have used the phrase "insider info" as anyone with MLS access can pass it on.

Stay away from shortie and pounce on REO is the tune you want to hum.

Do you have a mailing list type vehicle too? I appreciate it.

aabsolute, every Realtor has the tools to set up a customer on automated listings updates, as they happen, daily, or weekly. Also, you can do it yourself, on many websites, with the ability to receive only REO, short sales, foreclosures, etc.

It doesn't cost me anything. I don't do any pay per click search engine placement. I am constantly growing my website and adding new links and searches to it. I try to make it a one stop shop for potential buyers. My leads have actually gone down as I have added more information, but I feel it's better to give more information to those looking for property in this area.

You can search all foreclosures by area and price range just by clicking on the links. The properties are constantly updated from the MLS. I have just added a great search page for Sandestin and for condos between Destin and 30A. I am now working on a water front properties page including condos and homes. Real estate websites are always evolving and if you want to stay in the game then you better understand that.

Josh is on the right track. I've also been offering foreclosures along with my HOTSHEET for some time now. I don't think I'd have used the phrase "insider info" as anyone with MLS access can pass it on.

Stay away from shortie and pounce on REO is the tune you want to hum.

The REO is the ticket but you better be able to move yesterday. The good deals will have offers on them within hours! Like the old days! I still have buyers asking what should I offer? You better come in at asking or above if you really want it and it just hit the market. If it has been around awhile the bank may come off 10%.

Yes bobby i found that out. After getting one of the better deals in years on 30-a i can tell you the competition is huge for the good deals. Bidders on the good deals are like sharks looking for raw meat.Better have cash and be ready to close in 1-2 weeks max on the very best deals