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Frequently Ask Question.
Our company is not a bank but we lend money to others. Can we register as a Foreclosure Member?
No. Only government branches or banks can register as Foreclosure Members. Your company must be legally classified as a bank by state or federal governments to be eligible as a Foreclosure Member. And your company must be in our list of banks.
For foreclosed houses, bank may set up different sets of rule, not cover by normal real estate transaction because of the possible lower house price. It is quite possible that the bank requires the potential buyer to make one time payment. if it is not a bank, it will put the potential buyer in a very unfavorable position. Suppose several potential buyers walk in a company and have the transactions. Later the company closed with all the money. So in this web site only government branches or banks can register as Foreclosure Members.
For foreclosed house, where shall the money transaction take place?
Any transactions shall only be at inside the government branches' or banks' offices or attorneys' offices. Outside the office, there shall be the name of the government branches or banks. It shall not be at the for-sell house, motel or hotel. You probably heard the parking lot story. A man parked his car in a government parking lot. A guy came and asked for cash, and the man paid the guy for parking fee. The parking lot staff asked why the man paid the guy, and the man said he thought the guy was a staff, and the man needed to pay the parking fee again. Anyone around the for-sell house doesn't make him the owner.
For banks, the location/address must be one of the location in our banks page. Yet, if you aren't 100% sure that the company is a bank, you
must walk away. Only government branches or banks can list foreclosed properties in this web site. Cash shall not be used in any transactions.
How to attend Open House?
Both the potential buyer and the seller should bring a friend with them and carry a cell phone. Potential buyer should ask many questions and look at the condition of the house. Some of the questions are whether the property is located in a flood zone, earthquake zone, etc. The seller shall follow the guidelines with regards to state's disclosure requirements for the house. Foreclosed houses may not be in a ready-to-move-in condition. However, foreclosed houses are likely sold "as it." Potential buyer shouldn't purchase any house without seeing it first. Potential buyer shall make sure that the house key that the person hold can actually open the house. It is important. Potential buyer don't want that the man in the house simply because the door was opened.
For house sell by owner, where shall the money transaction take place?
For house sell by owner, if potential buyer get a mortgage loan from bank, the bank will likely protect the asset. If buyer of the house is in default, they will get control of the house. During closing, the bank may send an attorney to the meeting. It will be a little bit more difficult to fraud the bank because they do loans everyday, although not in the current economic situation. More caution should be taken at anything before closing.
One way of doing it is that the
potential buyer and the seller negotiate the price and terms and write them down on a worksheet. All the terms should be fully communicated and no misunderstanding. The worksheet is likely
not legally bound. They can go to an attorney's office, and the attorney can draw a Sales Agreement based on the worksheet and they both sign the Agreement. The potential buyer can give the check payable to the attorney's escrow or a licensed escrow company. Attorney will charge for their service, so both the seller and potential buyer should be sure if they intend to have such the transaction. They should negotiate as to who would pay that that attorney fee If the deal goes through and if the deal doesn't go thru.
Why is the DEPOSIT so low?
The DEPOSIT for houses in this web site shall not exceed one thousand dollar ($1000), according to the Term of Use, regardless of the market value of the house. ListARealestate.com tries to limit the risk for the buyer. It is big enough to cover the attorney's fee if the buyer bare the cost of it.
Shoud I buy the house thru an agent for a listed property?
The potential buyers can choose house represented by agent if that is what they want. Some agents charge the seller only. Some agents charge both the buyer and the seller if the deal goes through. Some agents just put a "House for Sales" sign on the yard and they charge commission for the house even if they didn't put any other effort on it. ListARealestate.com allows the agent to list a house in this web site. If it causes ListARealestate.com too much time because an agent violates the Terms of Use such as solicitating other member to become his or her agent, ListARealestate.com may deny all the real estate agents from registering our membership. Currently, US need someone to sell houses, and the agent sell houses.
Should I hire an attorney to buy a listed property?
The potential buyer is always encouraged to seek any legal advice in any other source in the real estate transaction process. The potential buyer may insist to use his or her attorney to draw Sales Agreement. If not, the potential buyer may hire his or her attorney to read the Agreement before signing it. An attorney will always protect potential buyer's interest if the potential buyer hire him regarding the contract. The attorney should be specialized in real estate. It is better if it is referred by a friend.
Can the Auctioneer lists houses without merchant service?
Yes, you are only a Subscriber without merchant service, not an Auctioneer.
Is the on line payment a real estate DEPOSIT for the foreclosed property?
No, It shall never be interpreted as real estate "DEPOSIT". It is part of the payment for the foreclosed house price which the Winning Bidder pays on line to facilitate real estate transaction.
What Is the Maximum amount for each on line payment submission?
Technically, it allows $999,999. However, when the Auctioneer sign up with the merchant service ListARealestate.com provided, ListARealestate.com will set up a limit for the Auctioneer, and currently it is $15,000. For Mortgage Type Auction, the winning bidder is required to submit 1% ( $1000 if 1% is less than $1000) on line. The maximum limit is $1.5 million (1% of 1.5 million is $15000). If the Auctioneer wants to have a high limit, the Auctioneer has to put a deposit.
Does the Bidder have to be pre-qualified for a loan to place a bid in this web site?
No, the Bidder can place a bid on Cash Type Auction property in this web site, and the Winning Bidder is required to make one time payment on line. If the Bidder wants to place a bid on Mortgage Type Auction property, the Bidder is required to be pre-qualified for a loan.
Does the Auctioneer have to penalize the Winning Bidder if the Winning Bidder is not pre-qualified for a loan?
No, it is between Auctioneer and the Winning Bidder, and they can work things out. If the Auctioneer choose the option, ListARealestate.com will enforce term of the Agreement to charge the Winning Bidders $100 plus merchant service transaction fee. Without pre-qualified, the Winning Bidder wastes everyone time.
Does the Auctioneer have to suspend the Bidder if the Bidder didn't submit payment when they had chances?
No, if the Auctioneer chooses to suspend the Bidders, it helps eliminate those Bidders whose are not serious about auction. Only the top three highest Bidders may be suspended. If the bidders have no intention to pay for the auction house, they shouldn't place any bids.
Does the suspended Bidder have to pay the $100 Reactivation Fee?
No, however, suspended Bidder will not be able to place any bid in this web site without paying the $100 Reactivation Fee.
Is it unfair to the Auctioneer since the Winning Bidder can get a refund in between Day 21 to Day 30?
No, ListARealestate.com feels that the Bidder wants to buy the foreclosed property because it is a good deal, not because the Bidder is bound by the contract. In addition, if Closing has been completed before Day 21 and the auctioneer clicks and confirmed the REGISTER button, the Bidder will no longer has the refund option. ListARealestate.com believes that most Bidders won't go through all those troubles to buy a foreclosed house and get a refund that deducted the merchant service transaction fee. This term will help increase the number of Bidders to participate in the auction and therefore it will help Auctioneers to unload their foreclosed properties. Please remember that if the Bidders exercise the refund option twice, they won't be able to place any bid after that.
Can the Bidder pay a penalty for exercising the refund option twice so as to allow that Bidder to place bid in this web site again?
No, the Bidder not only causes the Auctioneer to spend a lot of time unnecessarily but also denies the chance for next highest Bidder to buy the property.
Does the Winning Bidder have to exercise the refund option if Closing clearly can't be completed before Day 30?
No, it is between Auctioneer and the Winning Bidder, although the Winning Bidder is taking a risk. In Day 31, the refund option will be expired. The refund issue will be settled according to the Contract of Sale which is posted by the auctioneer for the auctioned property. The Winning Bidder is strongly advised to seek legal advice if the Winning Bidder does not want to take the refund option. |