Working with Fifth Third

Fifth Third is a bank servicing a variety of states as far north as Michigan, south as FL, east as PA, west as Illinios. They are by far the hardest bank to deal with that I've experienced. They do not allow third party authorizations, they require a power of attorney.

Got through that part, now someone in the loss mitigation dept says a part of the short sale package is a listing agreement and something allowing them to talk with the realtor. I told him it's FSBO, not listed with a realtor or on the MLS. He said it has to be listed with a realtor to be considered for a short sale. Sounds ridiculous to me. Anyone have experiece with Fifth Third or a similar requirement?

Justin

Edited: 06/26/2010 at 10:26AM by Justin H.

Scott Hubbard

Rehabber · Tucson, Arizona

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Icon_minipost Nov 09 '09, 11:33 PM

Other lenders too have this requirement. I expect this to become more popular. You should have a realtor on your team and this issue could be resolved by having you list the property using your POA with a realtor.

Instead of putting the owners name in the seller section, put "owner of record".

You sign it, Justin H, attorney in fact. Bing, bang, bong.... You have your listing agreement.

Edited: 06/26/2010 at 10:27AM

Justin H.

· Columbus, Ohio

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Icon_minipost Nov 10 '09, 03:59 AM

When listed in the MLS, what should I put for the advertised price? Short sale amount or closer to appraised value? Short sale amount could draw alot of unwanted unattention. Closer to appraised value can affect the BPO.

Edited: 06/26/2010 at 10:27AM

Scott Hubbard

Rehabber · Tucson, Arizona

1025 posts
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Icon_minipost Nov 10 '09, 05:32 AM

Originally posted by Justin H.

When listed in the MLS, what should I put for the advertised price? Short sale amount or closer to appraised value? Short sale amount could draw alot of unwanted unattention. Closer to appraised value can affect the BPO.

Personally, I do not think it will influence the BPO or appraisal either way. However, if I had a choice, I would price it near the avg. price for a distressed comparable. Lender would like to see that you tried to get a fair price for the property. By putting in a realistic range, it will not be closely scrutinized.

Good Luck

Edited: 06/26/2010 at 10:27AM

Kathryn K.

Real Estate Investor · San Pablo, California

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Icon_minipost Nov 27 '09, 08:39 AM

Once it is listed with a realtor, what is to stop that realtor from taking another offer and presenting it to the bank? Since you don't yet own the house, the listing agreement is with the seller, who has an interest in getting the highest offer to mitigate tax consequences. Is this just about finding a realtor on your team who knows you will bring more deals?

Edited: 06/26/2010 at 10:39AM

Scott Hubbard

Rehabber · Tucson, Arizona

1025 posts
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Icon_minipost Nov 28 '09, 04:54 AM

Originally posted by freedomwest

Once it is listed with a realtor, what is to stop that realtor from taking another offer and presenting it to the bank? Since you don't yet own the house, the listing agreement is with the seller, who has an interest in getting the highest offer to mitigate tax consequences. Is this just about finding a realtor on your team who knows you will bring more deals?

You need to record an affidavit of memorandum or, if using an option contract, a notice of option. This will cloud the title keeping the listing agent from side-stepping you. In the contract with the seller, you should have a provision that allows you to list the property on behalf of the seller. The listing will have a contingency that states sale is contingent upon receiving clear title, or contingent upon seller exercising its option (or something like that). You need to check with an attorney and the broker to see what works for them. You should be using a listing agent experienced in these kind of short sale transactions.

Edited: 06/26/2010 at 10:40AM