This is neither a rant nor a rave. Just a sharing of two recent experiences for you to be aware of with foreclosure listings. Two different banks listings and no names will be mentioned, just a heads up to be aware.
1) A property went through a judicial foreclosure auction, which means in my state of Oregon, the property goes through a 6 month right of redemption period before the purchaser, or bank, can market/sell it.
I get the REO right after the auction took place and am instructed to take weekly date stamped photos and inspections and submit a weekly report....at the end of the 6 month redemption period the listing agreement is issued at a 5% commission: 3% to the selling broker and 2% to the listing broker!
2) A totally different bank seller and property. This one went into multiple offer status and a buyer represented by a selling agent countered with the best price but added to their counter the seller would pay UP TO $5,000 in buyer closing costs. This offer was accepted.
When the closing HUD was issued the morning of our closing day, I saw the seller was contributing $1,700 to the buyer. However the commissions on the HUD were based on a sales price $5,000 less than the actual sales price, instead of on the sales price, less $1700.00, the actual seller contribution to the buyer.
When I questioned, the seller said the counter stated $5,000, so that was what they wanted deducted from the sales price to base our commissions on! I re-sent my commission demand using the actual seller contribution amount. Escrow closed that day without disputing our commission demand. I contacted the supervisor on the escrow officers and the escrow company did pay the difference.
Just a couple of things to watch out for and be aware are happening.
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