San Diego short sale and foreclosure advisor

The legal department of the California association of realtors stated that a Realtor working with and investor must not represent that investor in the purchase of a home once the owner receives a notice of default.

Foreclosure investors must be cognizant of this law. An investor can incur criminal penalties.



San Diego short sale and foreclosure advisor: "In the October issue of Real Estate magazine on page 10 a staff attorney for the California Association of Realtors gave a interesting scenario in which a California Realtor wanted to represent 'Rick who was willing to buy Susan's home as an investment. Susan was elated with the full value offer because she wanted to sell the home before the Foreclosure sale. Susan's lender had properly recorded a notice of default. Can a Realtor represent Rick? No, it is illegal under the California Home Equity Sales Act because Rick does not have an insurance bond. (none are offered in California). If you are working with an investor you must have very good timing. When working with a short sale buyer you must consumate the transaction before the NOD gets recorded. Once the Notice of Default is filed the buyers Realtor must withdraw in writing (in this situation). But then the article from the attorney says you may be able to get a referral fee from the Selling agent. Which brings up the fascinating concept of the how the Seller's agents is going to interact with the buyer and then give a referral. I must give my standard disclaimer here - If you are an investor or a Realtor speak with a California Real Estate Attorney."