Trying to find a way to make a deal in this mess

**miamicuse** · 03-16-2010, 07:57 PM

I am interested in a short sale property in Miami. I have an agent representing me. I visited the property three times. On the third time visiting, my agent was not able to make it so I went myself. The seller is also a real estate agent.

This is what she told me when she was with me.

They had an executed contract but the deal fell through, the buyer bailed on the last minute.

The previous buyer and the bank went back and forth several times, and she knows the magic number the bank is willing to take, but she wouldn't give me that number.

Because the buyer bailed on the last minute, she was supposed to vacate the property on the original closing date, but since there is no deal, she did not move out, instead, she filed for bankcruptcy, now she can stay longer at the house while she tries to sell it again.

She told me she does not care how much I pay for the house, whether it's 200K or 800K she is not getting a dime back. She knows how much the bank is willing to let it go, and will give me that number but in exchange, she wants to sell me her "furniture" and "appliances" for 30K. Those are furniture and appliances I don't want anyways, but she said basically it's the price for that magic number, she wants to set up a "side deal" where I pay her 30K to buy her "furniture".

I told my agent later about this and he said to not do that because he could lose his license on dirty deals like that. But he suggested that I submit an offer anyways without any of this. I did.

The seller called my agent back and said the offer is too low and they will not pass it on to the bank. I asked him to tell them to counter me...he did and they basically told my agent, that they don't have a counter offer, they don't care about any counter offer numbers, all they want is a deal where I would pay them 30K, then they will tell me the magic number and pass my offer to the bank.

How can they do that?

They are basically saying to me no matter what I offer they will not pass it on unless I give them 30K off the side if I bought the house.

Also, if they have already declared bankcruptcy, can they still legally sell the property?

My wife really like the house, and so we are trying to figure out this crazy game.

Thanks for any comments.

**nicaben** · 03-16-2010, 11:04 PM

shady.

i would run away from this deal as fast as possible.

you can report "the agent" to the department of real estate...but its likely that she doesn't care about any repercussions there. unfortunately, as long as they "own" the property, they can sell it to whoever they wish. Filing BK does not strip them of ownership.

**maui** · 03-17-2010, 12:59 AM

Wow, apparently she didnt read the part about 'code of ethics'. Blackmailing you into paying $30K for her trash? Your realtor (or you) should speak to this person's broker, after all, every transaction and activity that this individual engages in under her real estate license ultimately reflects on the broker. These are grounds for this individual's license to be revoked/suspended.

**markbrian** · 03-17-2010, 06:38 AM

Run run run run run is my advice!

**miamicuse** · 03-17-2010, 02:22 PM

I even told him this is fraud...

but he said this is not fraud. That a lot of people, alongside a transaction of the property, will buy and sell their patio furniture, or bookshelves, or pool ornaments etc...to the buyer as another deal, it is not out of the ordinary, it's "creative" he says.

I said but the stuff you offer to sell me is not even worth $2000 and you want $30K!

but it is a house my wife really likes so I have not yet burnt the bridge to see if there is a way I can see through this mess.

**markbrian** · 03-17-2010, 02:43 PM

Again I say RUN!

Your agent advised you correctly IMHO.

There is a way to get through this. Find another home. And trust your agent!

Again I say RUN!

**agentsranking** · 04-07-2010, 09:53 AM

If you've decided that this is "the house" for you and your family I think your only real option is to wait until the bank forecloses and evicts the current owner. I'm not sure about the bankruptcy and foreclosure laws in your state but the bankruptcy will likely buy them some additional time before the bank takes the property back. The problem is that with the current real estate mess banks are sometimes waiting years before they decide to foreclose, there really isn't any way to know how long the bank is going to wait before they take action. After they evict the current owner they'll list the house as an REO which means any offer you write will be submitted directly to the bank and you won't need to deal with the current "crook" living in the house.

Your other option is to report the seller to the board of realtors in your state. What she's doing is illegal and would result in her losing her real estate license. In addition, I think if the property is listed for sale on the MLS she has an obligation to submit the offer to the bank.

The more I think about your situation your best bet might be to contact her real estate broker about the situation. The real estate broker is the company that has the home listed for sale, for example Coldwell Banker and ask to speak to their managing broker. Tell them what the situation is and threaten to report it to the board of Realtors. I would bet this will work because ultimately they are responsible for the actions of all of their agents and could get in trouble/face fines based on the actions of this particular agent.