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Bob

SoWal Insider
Nov 16, 2004
10,468
1,346
O'Wal
Hear that deafening silence? If real estate and mortgage brokers had to pass fiduciary responsibility standards, the herd would be thinned considerably.
yes, bring back debtors prisons too, because, based on the credit reports i have read, everyone needs to do a stretch
 

Bob

SoWal Insider
Nov 16, 2004
10,468
1,346
O'Wal
One more quick comment that I will be interested in hearing what the realtors have to say...

During this downtime, if I was a realtor, I would do my best to make it more difficult to obtain a Florida real estate sales associate license. Specifically, I would lobby hard to do away with reciprocity agreements with other states (especially Georgia, Alabama and Mississippi) and perhaps advocate changing the passing score on the exam to 80% instead of 75%. This would shut out a large number of the carpetbaggers and scalawags who are just waiting for this market to boom again. You might even consider denying a broker's license to anyone who has more than two foreclosed properties on their credit report as that would be a red flag for a realtor who may not have much real estate common sense.

Just a thought.
would you deny a broker's license to anyone brought to foreclosure due to medical bankruptcy?
 

Bob

SoWal Insider
Nov 16, 2004
10,468
1,346
O'Wal
Here's the definition I find time and time again for this term:
transaction carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting in his own self-interest.
What part of this is not true in a foreclosure or short sale, and what part of this has anything to do with "duress"?

ONLY real estate appraisers take the "duress" into consideration. I cannot see why. Again - when the frenzy was on, and you had to plop down $50,000 in the next ten minutes to get a seller to even consider selling you a condo, why was that not duress on the part of the buyer? Why is EVERY relocation and divorce sale not excluded? Why not exclude EVERY estate sale, EVERY case where someone has lost their job, EVERY case when the fourth child made the house too small? How about when you are on a relo trip and have 48 hours to find a house or else you will have to live in a hotel for three months with the kids and the dog? That's duress.

It's silly. If you HAVE to sell, why does that make that transaction different? I also think it's misleading that they have taken a phrase which means the same thing in every other legal setting, and added this "codicil" of duress. Call it something else! Call it a Duress Sale!
i would argue a party being forced from their home by the bank is "unwilling". do i have to sell you that idea?
 

Here4Good

Beach Fanatic
Jul 10, 2006
1,270
527
Point Washington
i would argue a party being forced from their home by the bank is "unwilling". do i have to sell you that idea?

If the foreclosure is complete, they are no longer the seller.

If it is a short sale, then they have willingly ceded the pricing negotiation to the bank, for other considerations. The bank is not the one whose name is on the listing agreement, the seller's is. I agree that they are under duress, but they are not being "forced": they are choosing the option which is in their best interest. They could sit and do nothing, and let the foreclosure happen.
 

Bobby J

Beach Fanatic
Apr 18, 2005
4,043
599
Blue Mountain beach
www.lifeonshore.com
Hear that deafening silence? If real estate and mortgage brokers had to pass fiduciary responsibility standards, the herd would be thinned considerably.

I wonder if we would be in this mess if they would have applied this same logic to the buyers. To get a loan all you had to do was be able to fog a mirror and you got whatever you wanted. I had a client that had let a car go back 5 years prior and still got a loan with no money down for $525,000! He was even stunned they gave him the money.
 

beachbliss48

Beach Comber
Jun 30, 2008
25
0
I wonder if we would be in this mess if they would have applied this same logic to the buyers. To get a loan all you had to do was be able to fog a mirror and you got whatever you wanted. I had a client that had let a car go back 5 years prior and still got a loan with no money down for $525,000! He was even stunned they gave him the money.

do you still own the property?
 

Bob

SoWal Insider
Nov 16, 2004
10,468
1,346
O'Wal
If the foreclosure is complete, they are no longer the seller.

If it is a short sale, then they have willingly ceded the pricing negotiation to the bank, for other considerations. The bank is not the one whose name is on the listing agreement, the seller's is. I agree that they are under duress, but they are not being "forced": they are choosing the option which is in their best interest. They could sit and do nothing, and let the foreclosure happen.
no one party on the selling side in a foreclosure or a short sale is willing. additionally all parties are under duress for reasons that are rather obvious. this is why the transactions are noted. coercion by threat of foreclosure does not afford the owner a choice. the transactions are one in the same in that they are on different lengths of an unknown but rather certain timeline. the only question is the ultimate loss to the owner and lienholder.
 
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