Saturday, August 20, 2011

Fear of Fraud Ruining Many Investor Deals

It keeps getting harder and harder to get shorts sales accomplished. It is especially difficult with investors even though they are paying cash in most instances. Investors are more than one-third of current transactions do it does not behoove the industry to make matters more difficult for them.

Lenders have certainly made it more difficult for investors with restrictions in reselling, re-listing, marketing, etc. However, now the listing agents and their brokers are injecting personal feelings, emotions, and LEGAL opinions into the mix and this is REALLY hurting the industry.

Earlier today, I was on the telephone with a listing agent in Florida. I was on the call as the attorney for an investor/buyer with cash. This agent explained to me that she does not so “investor” deals. I explained to her that this is distressed real estate and she cannot afford to maintain this position. WELL!!! Missy Miss advises me that she does $20M a year in production and does not need to do investor deals! Folks, this lady would boo a cure for cancer. Could not have been more negative, condescending and arrogant.

My response to this verbal diarrhea was that she accepted a client and has a duty to the client. He position necessarily violates that duty. She then explained that her broker told her not to accept investor deals. OK, a new wrinkle. She stated that attorneys told them not to participate in them because they might lose their licenses. I advised her that NOT participating in investor deals and presenting all offers, FAIRLY (without sabotaging them) could cause her to lose her license!!!

Ladies and Gentleman, this is really getting out of hand. Not all investor deals are fraud. A small fraction of them are. Do we judge ALL attorneys and ALL real estate professionals by the bad actions of a few?? There is NO place in the real estate market for the injection of personal feelings and emotions into the process. This listing agent was clearly sabotaging the deal because she “didn’t like it”.

I then decided to review the foreclosure status online. The foreclosure is 2 ½ years old and getting close to sale. I asked what the status of the property was and the listing agent told me “pre-foreclosure”. PRE-foreclosure?? Honey, this property is half way to gone!! Did she not know the difference?? A willing buyer, with CASH, told her that there is not a good fit – and it was not because of price or terms, it was because of her!! Investors need love too!!! LOL

Paddy Deighan JD PhD

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