As I was looking through the expired listings in the Oklahoma City MLS System today, I was reminded that too few professionals understand the extent of an arms length relationship when it comes to taking an Oklahoma City area preforeclosure property and working a short sale. I have previously posted numerous times about short sale fraud as it relates to third party investors who have no intention of closing, but this is to remind everyone that the rule goes beyond this.
In two recent listings I saw that a REALTOR® that is a relative of the person going through a short sale was handling the transaction. In one Oklahoma City home for sale this went on for almost a year before it went expired. Now maybe the agent was well meaning in trying to help out some they are related to, but it does not satsify a lenders request to be at arms length. This also goes for the buyer and sellers involved. I can't have my Father as the buyer of my short sale home.
Lenders are always concerned about getting fair market value form a short sale in Oklahoma City or anywhere, so when a thrid party tries to make money on the deal, or in the above example of a relatvie purchasing a home or listing a home, the mortgage company is concerned about a manipulation of the numbers in favoe of someone who has a vested interest. It may not make sense to many of you but it doesn't have to since you and I don't make the rules. As the old saying goes, he who has the gold makes the rules, and it is not a stretch to think that someone is keeping a price low to benefit someone close to them.
If you are a distressed homeowner in the Oklahoma City area and you are having trouble making payments becasue of financial hardship, we are here to help you. It is important to know the rules if the object is to avoid foreclosure by doing a short sale. We know the rules and we abide by them becasue it is in your best interest to have someone who knows what they are doing to save you from further credit rating disaster and put you in position to buy another home sooner without a foreclosure on your record.
Joe Pryor & Charlene Humphreys, Distressed Property experts
joe@joepryor.com
chumphreys2@cox.net