I've seen some old threads on this...but I wanted to hear some updated answers.
I was in real estate for years - have negotiated tons of short sales on my own. Now I work for an attorney and I am negotiating short sales for agents that close with our office. What is the best way to get paid a 3rd party fee? I met with some realtors earlier this week that said some banks are now paying it? Have any of you encountered this?
Any input would be greatly appreciated...
Thanks!
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I negotiate as a third party as well. In Oregon as a DMSP and in the state of Washington with an Attorney. I've actually encountered multiple files, where our fee was rejected at final HUD approval. The fee was on the buyer's side of the HUD- per the "pre-disclosed agreement" signed when they submitted their offer.
If the buyer was receiving seller paid closing costs- our fee was rejected. Reason was- the investor was not going to pay third party negotiating fees - directly or indirectly. This has happened multiple times with Wells Fargo/BofA- the investor being Fannie or Freddie.
I don't think it has changed. Banks are not jumping up and down to pay these fees is the experience I have had.
There are multiple ways to be compensated, but the most common are -
1) Agents give up a % of commission
2) Buyer pays the fee
3) Attorney negotiates and gets fee on HUD from lender
4) Same as above for title company
Sarah,
The buyer can pay the fee or it may be allowed to come out of their closing costs if awarded. Another option is the fee getting paid out of agent's commission. I've very rarely seen a lender/investor approve a negotiation fee.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com
We are paid by the buyer via a pre disclosed agreement. This way, the agents keep their full commission. Attorneys are also going to this because under new Fannie/Freddie rules they are being limited to as little as $1,000. in fees. Also, the new rules prohibit ANY processing or doc prep fees on the sellers side. Buyers like our system because we allow them to lower their offer to compensate, and can usually get a closing credit payable to them. All fees are on HUD.
www.ssprocessors.com
Makes sense, Joseph. Thanks!
I haven't seen any banks paying it, not directly and on their side of the HUD. Usually, there is a closing cost credit to the buyer, from the seller, and the fee gets taken out of that credit, as some type of fee, on the Buyer's side. I'd be interested in hearing of any banks that pay the fee on their side, designated as a negotiation fee.