I am hearing that some banks are offering to pay Realtors 1% of appraised price for Deeds In Lieu of Foreclosure versus doing a short sale or foreclosure. Has anyone else run into this? Has anyone actually taken advantage of it and if so how did it work out? Also, which banks are offering? The only one I am aware of is Chase.
Coldwell Banker Liberty Realty
490 Morro Bay Blvd
Morro Bay, CA 93442
I'd be interested to see this. It'd make those 1 or 2 that we lose to DIL actually worth the time we wasted.
I ran into one of these with Chase about a year ago. Unfortunately, I also ran into an issue with the Jr. Lien holder wanting money from the homeowner that he did not have so the closing did not take place. Essentially, they stated they would pay $1500 to the realtor as a third party to the DIL. The payment was predicated on the property being in good condition (cleaned, moved out all possessions). Once it was confirmed, the payment to the agent would be after the closing directly from Chase. Since the closing did not occur, I don't know if that program is still in place because I have not had any other clients since needing a DIL. I have asked other banks but none have provided any information nor confirmation.
How did Chase communicate this DIL deal with you? Did you request it, or did they just list it as an alternative to the SS or FC with other information? Just wondering if this might be a good alternative that could be established up front with them.
I've done this with Citi mortgage and in my opinion it's not a bad option for homeowners and us the agent, specially if the property is in a depressed neighborhood.
could you please provide me with a contact(s) at Citi mortgage. I might have a client interested in this. Thank you, Miguel
I have never heard of this at all. I would like to know more about it. My first thoughts on it are that if we are representing the sellers, that it would be a conflict of interest, if we directed to giving up their deed because it would have a bigger against them on their credit than a short sale. Maybe I am wrong. I would love some comments please.
Great topic Andee. I would be curious to find this out as well.
It sounds like a lot less work than a short sale!
You should not engage in this type of business. Let's take it to its ultimate conclusion. The easiest way for a bank to own a property is by DIL and now they are paying Real Estate Professionals to help them own a private property? We make our living listing and selling homes, not cutting our fees to help a bank get a property that we could list for FMV. If this is the trend, say Goodbye to your livelihood. Its not about the money...its about having a profession/job/vocation in the future.
This is a terrible thing but sadly many agents will not draw a line in the sand because of the money. The next thing you know - either the banks will keep the properties for rental - because that is now the hottest market - or sell at much lower than FMV, devaluing properties even more and your paycheck at the end of the deal.
Where are the leaders with foresight and long term vision to see this nonsense for what it is and lobby to protect our industry. NAR? CDPE? Who?
Yes, its a lot less work than a short sale but the ramifications of our market, neighborhoods, communities turning mostly rental and REO market are terrible. Thing this through before jumping on the band wagon.
The banks all but own the right to private property now from the fallout of the bubble they created in "Real Estate Never Loses its Value" and "Everyone Should Own a Home"
Very well said.
I couldn't agree more!!
very good points