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.

Andee Allen

Coldwell Banker Liberty Realty

490 Morro Bay Blvd

Morro Bay, CA 93442

805-268-1292 (cell)

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I can't begin to calculate how imperative it is to learn everything you can about "selling" real estate.  Chris you are obviously worth more than your weight in gold.  

People, chewing gum and talking in the back row... your stop has arrived. You must look out for your Seller, stand up for your fees and constantly keep up in a changing Short Sale arena.

Lenders regularly put out media hype to influence one and all & to induce confusion and allow the public to think what they want you to believe.  Lenders don't disclose DIL can hurt your clients credit because they don't have to admit they know anything about credit. Worse yet, the way a DIL is going to be disclosed on your credit as mentioned can go several different ways and a great negotiator on your side could make all the difference or sink your client.  Technically, we can and should only speak of what we know as well but then refer back to the source for up to the minute confirmation.  Question everything, you are any clients last line of defense.

ps- I don't know everything and my opinion isn't humble, sorry. :)

Unless the banks waive all seller deficiency, you violate your Fiduciary duty to the seller and open yourself up to liability by accepting a commission on a DIL.

yes and we know that the bank will have an addendum that will completely exonerate them from anything they do in the field of real estate, as they are NOT licensed agents or brokers or attorneys and  should not be allowed to practice real estate law mixed in with the mess of loss mitigation; this is why they do not sign a contract...they are not a party to the transaction. They do not hold title to the real property.

Yet, they can create legally binding real estate documents that fall outside the field of loss mitigation and mortgage lending laying all responsibility on you! But we lost that fight because NO ONE, such as NAR, stood up to the banks to prohibit this unlicensed practice of law in the real estate industry. 

If agents fall for the DIL situation - then shame on them for hurting their distressed sellers. DIL is the same as FC. Who let these dogs out? No matter - its never going back to the way it was...count on that.

Occupy Your Homes is on its way - and I disagree with it totally - better prepare for the worst and hope for the best.

just saying....for what its worth...

I am aware of a program with BOA where the note holder is a GSE,Freedie, Fannie or VA. For instance the VA has a moratorium on foreclouses with Bank Of America and they are offering those homeowners, many of who have been foreclosed on but the trustee has not conveyed the property yet, a second chance to do a Loan Mod. After BOA reviews the HAFA package if the homeowner does not qualify for a Loan Mod they offer the homeowner an opportunity to do a short sale and pay them 4000, if the SS fails they offer up to 7500 for a DIL.

In my state, Texas is a non-judicial state, all the servicer has to do is send so many letters, phone calls and by the fourth month of default they can send a 21 day demand letter and foreclose on the property.I have heard it only costs the servicer about 600 in Texas to foreclose so why offer the Homeowner up to 7500 for a DIL.? Personally I doubt the servicer will pay 7500 in Texas as the language is carefully worded to say "UP TO". As far as the servicer paying the Realtor 1% commission that is news to me and particularly in a judicial state or for that matter a non-judicial state its probably contingent on FIRST offering the property as a SS.

I have a Citi FHA that once again has over appriased the property and Ill never get an offer at price they are looking for.  Let me know if anyone hears that the 1% is done also with FHA loans

could you get an independent appraisal? the short sale banks know that the origination lender's appraisal is all the buyer's lender will loan and they usually go with that. But it has to be Arms Length and RESPA compliant.

if your seller can afford to pay for it, put it in escrow and have the buyer's lender order it from title, thereby being truly third party and arms length.

I know that the FHA must have an FHA certified appraisal and Im not sure they would take from another source.   Its a great idea and I would order one each time, if we knew it would be considered.   What has your actual experience been with getting your own?

Its the way around a lopsided, one-sided opinion of value. An independent appraisal is true fair market value...not a creditor upping the value of a property. Short sale FHA appraisals most do not included distressed properties so value is a mix of apples and oranges instead of apples to apples, distressed to distressed.

have your buyer apply for an FHA loan, and have that buyer's lender order an appraisal. They will most likely be different and the FHA origination appraisal will trump any other value as banks will only lend on the buyer's appraisal.

this is what started this mess...banks determined the value, using inflated appraisals so they could make more money. So use it in reverse to determine actual True Fair Market Value. Our livelihoods depend on TFMV  in a sense and we have to work hard to establish value, true value.

I have one in process right now.  I will let everyone know how it goes.  It is possible I will get it sold before the Deed in Lieu of Foreclosure as there is a new offer on the table and they have put the "deed in lieu" on pause.

 

How did you get one in process? The bank has told my seller that they qualify for a DIL after the atp expires but cannot tell me what an atp is or when it expires. Do you have any information you will be willing to share?

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We had a sale on the home, it fell through the day before closing.  The buyer had told the seller to move which she should have never listened to.  The seller not taking my advice to stay in the home until it closed signed a one year lease.  She had a terrific loan modification agreement. She hired a lawyer and of course they told her she should have listened to my advice.  Very unfortunate, but the seller is very naive.

The bank is dangling $3500 and a forgiveness of the debt over her head as bait.  She doesn't care about her credit (she is very very young).  I did get another offer on the property so the bank stopped the DIL and put it on pause.  They have just ordered another appraisal from the one done 90 days ago to see if the "new" offer is in line with the value.  I think it will be close and they will take the sale; but, you never know.  The seller is concerned that the HAFA will expire due to vacating the property if too much time goes by which is her primary reasoning to take the DIL.  Not to stereotype, but some of our young just want to get rid of the pain they are experiencing now rather than the long term consequences of a DIL and a foreclosure on their credit record.  They are young and feel they can easily bounce back.

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