That is a rough start for getting into the business (and REO properties are not the ideal starting point). Sounds like you are understanding the issues with 20-20 hindsight but I can be very sure you will never forget the lessons learned the hard way!

I can offer sympathy but no real suggestions as you are dealing with what you have already done!

i spoke with the court appointed trustee working for all the creditors. he emailed me and said he wants everything to auction off. he also said that he would have already auctioned off the house but it is worth 100K and has 95K mortgage against it, that is why it went back to the bank. so per his instructions he and an auctioneer are going to meet my contractors and another realtor from our office at a storage building and pick up the home owners things along with the keys. he is going to give us all the documentation we need to do this. after they are done with what they want they are going to return the keys to the homeowner. at that point they dont really care what happens to the house. so that is where we stand for now. i will be glad when this is all over. one thing is, i dont think realtors should be involved with pre foreclosures only after it is a reo.

I do pre-foreclosures all of the time and love it.In ga there is no right of redemption once it is sold at the courthouse steps it is gone for good.It sounds like the lender didn't know what the laws in your state were and was depending on you to know that for them.You being new didn't know any better.If you have a question in the future it is better to ask your prinicpal broker and get an answer than to not say anything and make a mistake.As far as the e&o policy covering you that is not always true it depends on what the principal brokers e&o policy says on the rider of what is covered and what is not.

The bank just holds paper and does not own the home until they have foreclosed on it and have the deed.Some states have right of redemtion,some allow for defeciency judgements,and some use a judicial,non-judical process or both.You really need to brush up on the laws of your state if you want to work this area.

good luck

i talked to the attorney again today. he actually has legal rights to everything this guy owned including the house. he is talking to the lender saturday and are going to email me with instructions to turn everything over to him. it is only 1 pick up truck load worth about 300.00. the lender emailed me a while back and said the foreclosure was complete and when they record the deed i would get the listing. when i seen that along with them wanting it rekeyed and winterized i thought it was ready to go. the home owner is on his way to prison for harvesting abouit 200 acres of corn and selling it that did not belong to him. and he has several houses all goinhg to foreclosure and he is filing bankruptcy. and now this trustee wants every little dime he can get ouit of all this.

Saturday the keys and junk were turned over to the bank trustee. he faxed us all the documentation stating they was the legal owner of it all. now this is a different bank than the lender i was dealing with for the house. monday i am calling the mortgage lender and let them know what is going on. my broker feels this was the best solution. should the lender know about this situation? once again the only reason the lender is involved is because the trustee said there was not enough equity in the home for him to deal with, otherwis he would have already auctioned off the home. i hope this is the end of this.