House Is A Pre-foreclosure, But Is Listed With An Agent
if I find the foreclosure in the legal section of my newspaper and the owner is interested in selling to me, but the house is listed with an agent for say a 3% commission, is this homeowner liable for that commission? What happens if I get the bank to agree on a drastic price reduction for a short sale? Is the owner still liable for real estate commission?
Any feedback is appreciated.
Thanks!
Ginnie
[addsig]
The answer to both of your questions is: Yes.
I wouldnt count on the realtor giving away his commission so you can "help". The Realtor , if the market is good, will get full fair market value for the home or close to it. You on the other hand will probably offer 50-80 percent of there homes value in an attempt to "help" them. I would let them know that if there house does not sell through the realtor in a reasonable time you would be willing to buy it at your price. I am sure they will first want to see if they can sell it and get what they want for it and even make some money doing it. If that doesnt work then they may be open to your price. Plus if it looks like it wont sell before its foreclosed on the realtor may be willing to get 500 bucks commission to let you buy it, better something than nothing. just some thoughts to consider, good luck.
Another thing you could consider is working out a deal with the Realtor to take a smaller percentage now if you guarantee to list it with him/her when you sell it.
It seems to me that if you pursue the short sale process, when it is your turn to present the proposed Hud-1 to the mortgage Company, you can indicate the 3% being paid to the Listing Realtor and it will be paid at closing if you can work out the numbers.
[addsig]
What are you writing in the letters? How many did you send out? I started my first mailers (387) over a month ago & recieved approx. 19 calls so far. These were to people in their 6 month redemption period.
I also mailed out to about 300 pre-foreclosures in the past two weeks recieved about 6 calls.
You have to put something in your letter or envelope to grab their attention.
I hope this helps.
Mike
I use "Mary" letters and send them 16 times to a NOD and NOTS Theyre very effective andsimple. Buy yourself a bunch of yellow pads, tear out the paper handwrite 5 different letters that say the same thing just differntly.. One of ours says "call me before its too late I can help" and its signed "Mary" another just says I buy Houses 4 to 5 per month call me so I can help you. signed mary. after you have the letters written go down to your local copy company and copy away. now the title company youre going to use will give NOD aand NOTS for free. buy a bunch of regular white envelopes and start addressing them. It takes the gal i have ansering my telephone about an hour a day. Do everything you can to make the letter look like it is coming from someone they know. Trust me people open mail that looks personal. When the telephone rings be ready to convert the take me off your list to a purchase. And when they ask for Mary you know they work.. And I have tried different names and Mary seems to work the best.
Thanks to all for your suggestions.
Basically, my letter states that I can help them with their foreclosure problem by buying their house for a fair price, and they can get their house troubles behind them. Possibly save some of their equity.
I thought all the lis pendens were notices that a foreclosure is about to happen.
Thanks for the info, arytkatz. I didnt realize it took 6 months for the pre-foreclosure to be recorded.
Hello, MoveSmart. Just to clarify, do you send 16 letters to the same person? If so, how often do you send those?
Alexander.
Quote:
On 2005-03-19 13:18, MoveSmart wrote:
I use "Mary" letters and send them 16 times to a NOD and NOTS Theyre very effective andsimple. Buy yourself a bunch of yellow pads, tear out the paper handwrite 5 different letters that say the same thing just differntly.. One of ours says "call me before its too late I can help" and its signed "Mary" another just says I buy Houses 4 to 5 per month call me so I can help you. signed mary. after you have the letters written go down to your local copy company and copy away. now the title company youre going to use will give NOD aand NOTS for free. buy a bunch of regular white envelopes and start addressing them. It takes the gal i have ansering my telephone about an hour a day. Do everything you can to make the letter look like it is coming from someone they know. Trust me people open mail that looks personal. When the telephone rings be ready to convert the take me off your list to a purchase. And when they ask for Mary you know they work.. And I have tried different names and Mary seems to work the best.