Can an investor buy a short sale directly from the owner?

11 Replies

For example, am I allowed to get an authorization signed by the homeowner, put together a packet, and negotiate with the bank myself? 

@Christian Chavez normally lender do not like it,  you can use someone else to negotiate the deal,  are you the Listing agent? 

@Carlos Zapata I am not a realtor and there is no realtor involved in this transaction. I want to do this directly with the seller. 

Normally short sale lender wants to have the property listed, you can find a Realtor to list the property an negotiate the deal with your help   I hope the best 

Most investors have certain requirements with property's being marketed. You'd run the risk of being black listed to purchase that property as the buyer being privy to sellers private information could be construed as a violation of arms length.

No reputable bank would deal directly with you as the buyer. Lenders want the property listed with MLS and negotiated by an agent and, they want all parties to be arms length so, if you put a friend or business partner between you and the bank, you would have to attest that you have no relationship to any party in the transaction.

Maybe I missed something but that's the only way I've done it (about 12 so far). I get the seller to sign an ATR agreement then contact the bank. The sale is between me and the seller and I am the one to negotiate the payoffs directly with the lender. I am an agent but not working in that capacity in these cases. I am the investor/buyer. Never had an issue. The bank (or service co) could care less. They want the money.

Same here Michael. It's all about the money, although it's been years since I've had to deal with homeowners directly.

Originally posted by @Michael Knaus :

Maybe I missed something but that's the only way I've done it (about 12 so far). I get the seller to sign an ATR agreement then contact the bank. The sale is between me and the seller and I am the one to negotiate the payoffs directly with the lender. I am an agent but not working in that capacity in these cases. I am the investor/buyer. Never had an issue. The bank (or service co) could care less. They want the money.

 Maybe they do it differently in PA than they do in the rest of the country. If it's a short pay, lender wants it listed to get the most money and exposed to biggest buyer pool potential.

@Ron S. They do want to see it listed usually here as well. I was referring to me acting as the investor/buyer and dealing directly with the lender.

Originally posted by @Michael Knaus :

@Ron S. They do want to see it listed usually here as well. I was referring to me acting as the investor/buyer and dealing directly with the lender.

 They don't make you complete an arm's length affidavit? That might work on a small local or regional financial institution on some portfolio product they have but that would never fly on a Fannie/Freddie loan.

As I mentioned in a previous post, I do not act as an RE agent at all on any of these. I am only a buyer. I only work with other agents that are okay with me negotiating the purchase. They usually don't care because it hasn't sold through their efforts anyway and the bank is okay letting them earn a reasonable commission. Most sellers contact me directly through my efforts and then put me in contact with their agent. I agree because I'm the buyer my acting as the agent in any capacity would not go over at all!

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