Isnt this unethical?

Q

quattroporte

New member
http://www.redfin.com/CA/Irvine/85-Passage-92603/home/5895169

From what I see on Redfin, it seems like the last owner bought the house in 6/2006 for $900,000. Then listed it for $800,000 in 7/2013. Assuming it was a short sale, the realtor sold it for $760,000 on 12/2013. Then the same realtor lists the same property for $900,000 on 1/2014 (less than 1 month later). The bank and the last owner got screwed. The realtor and buyer come out ahead.

Isnt it the realtor's fiduciary duty to make decisions in the best interest of the seller, i.e., last owner and bank?

I just feel this is so wrong on so many different levels. I feel bad for the last owner who probably has a messed up credit now.
 
Might be more to this story. Maybe some TI members with proprietary database access can check. Once scenario could be the new owner had to payout significant back taxes/liens/repairs etc... to bring it to market, so the profit margin may not be as much as it appears.
 
I posted about this a few years ago in another thread but it does happen and I learned a valuable lesson.

194Irvine Real Estate / Re: Listings that peak my interest... feedback?
? on: February 14, 2012, 03:10:32 AM ?

Just to throw some gas on this fire, this actually happened to me. It is currently under investigation so we shall se what happens. I personally think the agents conspired to hide my written offer at $600,000.00 to the bank (Chase).  This was the text of my email to the brokers.

Just so I understand the short sale process.  How can a bank accept an offer that is $60,000.00 less than a written offer, in hand, on the same property?  I can understand losing out to an all cash offer $5 or $10,000.00 less but$60,000.00 less seems a bit odd. Is the selling broker obligated to present all the written offers she has or can she pick and chose which offers get presented and just "lose" a higher offer in her briefcase?  This just doesn't seem to make financial sense for her or the bank.  Our offer was $10,000.00 over ask.


http://www.redfin.com/CA/Long-Beach/5587-Riviera-Walk-90803/home/7593339


Sold on 02/08/2012

$540,000

5587 RIVIERA Walk Long Beach, CA 90803
 
morekaos said:
I posted about this a few years ago in another thread but it does happen and I learned a valuable lesson.

194Irvine Real Estate / Re: Listings that peak my interest... feedback?
? on: February 14, 2012, 03:10:32 AM ?

Just to throw some gas on this fire, this actually happened to me. It is currently under investigation so we shall se what happens. I personally think the agents conspired to hide my written offer at $600,000.00 to the bank (Chase).  This was the text of my email to the brokers.

Just so I understand the short sale process.  How can a bank accept an offer that is $60,000.00 less than a written offer, in hand, on the same property?  I can understand losing out to an all cash offer $5 or $10,000.00 less but$60,000.00 less seems a bit odd. Is the selling broker obligated to present all the written offers she has or can she pick and chose which offers get presented and just "lose" a higher offer in her briefcase?  This just doesn't seem to make financial sense for her or the bank.  Our offer was $10,000.00 over ask.


http://www.redfin.com/CA/Long-Beach/5587-Riviera-Walk-90803/home/7593339


Sold on 02/08/2012

$540,000

5587 RIVIERA Walk Long Beach, CA 90803
Click to expand...

What is the process if I want to pursue this on offers I have made in the past? A couple of offers I made were not even acknowledged and those homes were sold $50,000 less than my offer price to some other conventional loan offers (cash would have made more sense). The sellers agent and the buyers agent was the same realtor....what a shocker!
 
@morekaos:

Did you have your own realtor representing you? It seems like these short sale agents would prefer to represent the buyer also (maybe they get more commission that way).
 
Too bad the FBI doesn't have a realtor fraud unit where you can report suspicious activity.  But here is the general FBI tip form.https://tips.fbi.gov/

I wonder if it works for this type of problem.  It should be the banks responsibility, and not the FBI.
 
irvinehomeowner said:
@morekaos:

Did you have your own realtor representing you? It seems like these short sale agents would prefer to represent the buyer also (maybe they get more commission that way).
Click to expand...

I was represented by a realtor.  He is a client who did it as a favor but the offer was legit and presented properly.  In the end...nothing happened.  No one cares about enforcing this kind of fraud.  In this case the closing seller and buyer brokers were from the same office....surprise!!!
 
In the end that is the lesson I learned.  The seller was still considered the legal owner so was free to take any offer he chose so long as the bank would approve it.  The banks didn't seem to care what price as long as it cleared a file off their desk.  Realtors and short sellers were taking $10M cash kickbacks for accepting and ramming through the lower offers.  My mistake for trying to be above board.  It didn't happen again.
 
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