| Legal Ideas and Information - May 2008 |
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The Frascona, Joiner, Goodman and Greenstein Website has a new look!
We're proud to announce the launch of our new and improved website, which can be accessed at the usual place www.frascona.com. We kept all the revered content, while adding a new look and ease of navigation. The new search feature gives you easier access to the informative articles and content on our site. We hope you continue to find our site useful. As always, please contact us with any comments, questions, or suggestions. Enjoy! The “Flipper” and the REALTOR®
The REALTOR® listed the sellers’ house and started working hard to sell it. Along comes the flipper and asks if he can buy it at a reduced price in a short sale. The REALTOR® writes the contract and submits it to the seller who signs it and then it is submitted to the lender for approval. While that approval is pending or even after it is approved, but prior to the closing, the flipper asks the REALTOR® if he will help him “re-sell” it to the ultimate purchaser. This should have been a bedtime story. The REALTOR® forgot that he was hired by the seller to get the best price. In fact the seller was not fully aware of the dual listings and is now thinking that maybe the REALTOR® was not working for the seller’s best interests as it looks to the seller like the REALTOR® is in partnership with the flipper. In fact the showings to the potential ultimate purchasers are making the seller a little concerned. I mean after all it was the REALTOR® that convinced the seller to sell to the flipper. It was the REALTOR® that then helped the flipper re-sell it. I hope that this little story helps clarify the issue. Yes, there is a different version that also might be told at a license revocation hearing. In essence the same story as above, except that the REALTOR®, working with the flipper, knows that the flipper is going to resell it prior to submitting the offer to the seller on the short sale. That's right, the seller's REALTOR® knows that the flipper is going to flip it prior to presenting the offer to the seller. Would the story sound better if the seller were made aware of this system? Maybe, but what seller would understand this issue when it was presented by his trusted REALTOR®. That is to a seller in dire straights. No this is not dual agency, this is very dangerous. Don't do it. The “Flipper” and the REALTOR® This publication is intended to provide accurate and authoritative information on the subject matter covered. It is distributed with the understanding that the publisher and distributor are not rendering legal, accounting or other professional service, and assume no liability in connection with its use. Copyright © 2008. This is an advertisement. |
IN THIS ISSUE
Foreclosure Revolution (Part I)
Summary In Colorado, the foreclosure process historically gave borrowers two opportunities to pull their property out of foreclosure. Prior to the foreclosure sale, the borrower (and others) could “cure” monetary defaults. After the foreclosure sale, the owner could “redeem” the property. Under the new law, applicable to foreclosures filed after January 1, 2008, the time period which would otherwise have been available to an owner to redeem has been moved prior to the foreclosure sale date. Under the new law, the borrower has a longer time to cure and no redemption rights. The total duration of the foreclosure process remains essentially unchanged. Longer Cure Period Under the old and new laws, the foreclosure process is essentially commenced by the filing of a “Notice of Election and Demand” with the Public Trustee. The Public Trustee then has ten working days in which to record the Notice of Election and Demand at the Clerk & Recorder’s office. Under the old law, the Public Trustee was required to set up a public trustee’s sale date in the 45-60 day window after the recording of the Notice of Election and Demand. The borrower had until noon on the day before the foreclosure sale date to cure the borrower’s monetary defaults. In order to cure, the borrower had to tender all back payments, late fees, default interest, and other costs and expenses to restore the lender to the position the lender would have been in had the default not occurred. Because Public Trustee sale dates tended to be set closer to the end of the 45-60 day window, borrowers essentially had two months under the old law to cure. If the borrower, or someone else entitled to cure, did not cure, the property would be sold at a foreclosure sale. Meet The Attorneys
Michael A. Smeenk Mr. Smeenk received his Juris Doctor from the University of Colorado in 2007. His practice emphasizes Estate Planning, Trust and Estate Administration, Real Estate, and Corporations. |
