A potential buyer, in the Tampa Bay area, had expressed interest in placing an offer on a short sale property in Tampa.
Upon contacting the Listing Agent for this particular property (never did talk to him...
was only ever able to talk to his "Assistant"), I found out that this is an A to B, B to C transaction.
(where A is the original seller, B is a investor and C is the end buyer).
The "Seller" is an LLC company that has been set up.
They are in contract with the Owner of Record to purchase the property.
The "Seller" has hired an outside company to process the short sale.
This particular company is charging a mitigation fee.
They want the buyer to pay $2000 for a loss mitigation fee.
(Seller and company most likely in bed with each other) So the "Seller" (B, investor) is trying to make a profit from "flipping" a short sale.
Some debate whether this is legal or not...
ethical or not? If all is legitimate, it would be nice if laws were put in place to make it mandatory to disclose this information to the Lender(s) and on MLS and to all involved.
There are a few known Agents in the Tampa Bay area that are heavily involved with these type of transactions.
Realtors and Buyers: Please be aware when placing an offer to do your research on public records and sunbiz.
Sellers: Make sure everything is disclosed to your Lender and all parties involved.
You may want to use an Agent that is compensated with the commission to help you sell your home and not from the profit of a potential undisclosed flip.
Upon contacting the Listing Agent for this particular property (never did talk to him...
was only ever able to talk to his "Assistant"), I found out that this is an A to B, B to C transaction.
(where A is the original seller, B is a investor and C is the end buyer).
The "Seller" is an LLC company that has been set up.
They are in contract with the Owner of Record to purchase the property.
The "Seller" has hired an outside company to process the short sale.
This particular company is charging a mitigation fee.
They want the buyer to pay $2000 for a loss mitigation fee.
(Seller and company most likely in bed with each other) So the "Seller" (B, investor) is trying to make a profit from "flipping" a short sale.
Some debate whether this is legal or not...
ethical or not? If all is legitimate, it would be nice if laws were put in place to make it mandatory to disclose this information to the Lender(s) and on MLS and to all involved.
There are a few known Agents in the Tampa Bay area that are heavily involved with these type of transactions.
Realtors and Buyers: Please be aware when placing an offer to do your research on public records and sunbiz.
Sellers: Make sure everything is disclosed to your Lender and all parties involved.
You may want to use an Agent that is compensated with the commission to help you sell your home and not from the profit of a potential undisclosed flip.
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