Over the weekend it was brought to my attention how a major REO broker seems to have an internal policy of putting REO listings in "Contingent" status as soon as they print the MLS printout to upload to RES.NET even though they don't have an executed contract. Had suspected as much but had not seen proof of it until recently. That is an unethical and probably illegal game some broker's play. Not only is it not fair to buyers agents and their clients but it may also limit the sales price the financial institution might receive for their assets. Has anyone else experienced that in their market and what have they done to curve such activity?

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    • There's one right now. Some REO agent is showing a house right in front of my in-laws. Nothing on the MLS, no sign, just a lockbox in the front gate. Today (per my in-laws) he was showing a house to some people and my father-in-law wanted to go look as well (a lookie-lou). He was denied acces because he didn't want to buy it. What a crock...err crook...
      • I know of one broker who will not be getting more assignments from a top 4 financial institution. The issue has been escalated to management and they support not doing business with unethical brokers. I am sure the other AMs are also being informed of this and they will start being more watchful of their brokers/agents business model. The word will spread to other AMs from other financial institutions and slowly but surely change will come.
  • In this particular instance there is proof by way of a MLS printout showing he property in C status.
    • This is very common and has been for years. All you need to do is pull a history of these agents’ solds and look at the % they double end. There is very little that can be done about it. Most servicers don't care, they want the asset sold. When some agents get questioned about a specific property if a complaint is filed they always have an out. Their client placed the offer before anyone else. The local boards don't care at the end of the day.
  • We also experience this - listing is in active status however all offers are held until one of the listings agents "buyers agent" from their own team bring in an offer. This way the selling side commission is split. Not much has been done to curb the activity. You have to have proof to report to local association or DRE.
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