By Christopher A. Combs

Find answers to the questions and more Hotline questions and answers addressing the following topics by clicking on the category in italics above each question. Visit AARonline for more hotline topics.

Foreclosures, REOs, & Liens

THEFT AFTER FORECLOSURE

Q: The lender foreclosed on the home and became the new owner of the home. When the previous owners of the home moved out after the foreclosure they removed all of the fixtures from the home, including vanities, sinks, toilets and light fixtures. Did the previous owners of the home commit a criminal offense by removing these fixtures after foreclosure?

Foreclosures, REOs, & Liens

BROKER CAN PAY COMMISSION ON SALE OF REO PROPERTY TO UNLICENSED BANK

Q: The broker enters into a 6% listing agreement with the bank for the sale of an REO property. After the transaction closes, the bank requests a 2% “referral fee.” Can the broker pay a 2% “referral fee” to the bank after close of escrow?

Foreclosures, REOs, & Liens

REO PROPERTY MUST USE LEAD-BASED PAINT DISCLOSURE

Q: The bank has foreclosed on a home built prior to 1978. At the foreclosure sale the bank received a trustee’s deed. The bank has now entered into a contract to sell the home, but does not want to use the lead-based paint disclosure forms. Is the bank as the seller of an REO property required to use the lead-based paint disclosure forms?

Foreclosures, REOs, & Liens

SPECIAL EXEMPTION AVAILABLE FOR OLD SUBDIVIDED LOTS

Q: The lender foreclosed on twelve homes in a subdivision, and these homes are now REO properties. The public report for the subdivision was issued four years ago. Can the lender sell these homes without a new public report?

Foreclosures, REOs, & Liens

LIMITATIONS OF ANTI-DEFICIENCY STATUTES

Q:
An owner of a four-acre lot has nearly completed the construction of the home. The mortgage lender has scheduled a trustee’s sale to foreclose on the home next week. If the mortgage lender completes the foreclosure next week, does the owner have the protection of the anti-deficiency statutes?

Foreclosures, REOs, & Liens

PURCHASE MONEY LENDER IN SECOND POSITION HAS NO CLAIM AGAINST HOMEOWNER

Q: The buyer purchased a $100,000 home with 80-20 financing. In other words, one lender made an $80,000 first purchase money loan, and another lender made a $20,000 second purchase money loan. The $80,000 first purchase money loan has foreclosed and now owns the home. Can the $20,000 second purchase money lender file a lawsuit against the owner to collect the $20,000 loan amount?

Foreclosures, REOs, & Liens

BROKER’S PROMISE TO PAY CO-BROKER COMMISSION IS ENFORCEABLE

Q: A listing broker represents an REO property. The listing broker has a listing agreement that will pay them a 6% commission. The listing broker lists the property in the MLS offering a 3% co-broke commission. A buyer makes an offer on the property. The REO seller will accept the offer but only if the listing broker reduces their commission to 4%. The listing broker agrees to the reduced commission. Can the listing broker require the buyer’s broker to split the reduced commission after the sale of the property?

Foreclosures, REOs, & Liens

COMPENSATION PAID BY BANK FOR BPOS MUST BE PAID TO REAL ESTATE AGENT’S BROKER

Q: A bank owns several REO homes. A real estate agent has agreed to furnish to the bank a Broker Price Opinion (“BPO”) on each of the homes. The real estate agent is charging a minimal fee for each of these BPOs. The goal of the real estate agent is to procure listings on some or all of these homes. Can the real estate agent directly receive compensation for these BPOs, or should the compensation for these BPOs be paid to the real estate agent’s broker?

Related posts:

1. Legal Hotline - February 2009
2. Legal Hotline Special Edition: Loan Modifications and Pre-Foreclosure Counseling
3. Special edition of Legal Hotline - Short Sales
4. Arizona Properties In Foreclosure - The Process, Opportunities, Roadblocks, And Pitfalls For REALTORS®