BSI is the 1st <and only> lienholder. They acquired servicing from Flagstar. The loan itself was also bought by a new entity, who converted it from FHA to non-FHA.
The purchase agreement, estimated HUD and proof of Buyer funds were submitted to BSI. Received written short sale approval from BSI. AFTER receiving the approval letter, I received an email message stating that I needed to sign an addendum to the listing agreement to assign 1/3 of the listing side commission to a 3rd party (Entra Asset Management) for unspecified services rendered, plus a $250 processing fee.
I have argued that this is not right -- the approval was based upon the submitted HUD which did not include these fees. Furthermore, by reducing commission -- and thereby increasing net proceeds on the Seller's side of the HUD -- this could be considered a "rebate". Violating rebate prohibitions may be subject to civil penalties, may be considered an illegal kickback under USC ss 2607 and may be a violation of the Real Estate Settlement Procedures Act (RESPA).
Has anyone else seen this with BSI?
I will follow up with the group with final resolution on this one.
Tags:
Horrible. Im interested in the comments on this one. I've got one closing with this outfit and I'm still angry over their cutting total comission by 1% to 5%.
I just had the same thing happen! Just curious on what happened with your BSI short sale? I recently had a BofA FHA loan - got it under contract (after 3 deals fell apart for BofA's ineptitude). After getting under contract BofA made claim to HUD - was paid and they sold loan to BSI. BSI approved all of my documents, issued an approval and AFTER that said 'oh, by the way, we only approve a 5% commission'. So I'm stuck based on our MLS rules to pay buyer's agent what was originally approved. Just curious if you've tried other ways to collect such as processing fees, etc?
Thank you!!!
@Lila.. how did you find out that BofA made the claim to HUD?
They told me after it was paid - our concierge manager never mentioned it; the short sale negotiator never mentioned it - it was only after the short sale department declined the short sale because the claim had been paid. Have you experienced that?
No, I was curious, I have a listing appt. with a seller who's loan is FHA, was with BofA and now with BSI. Just wanted to know what I should look out for. Thank you for the response.
I am having the same issue with BSI!
Originally,the loan was with Bank of America. I had an offer I had submitted to BofA, waiting on it to go through standard process. I then find out from BofA they are selling it to BSI financial. So I start over with BSI with same offer I had submitted to BofA. They are fast, they process the darn thing within 2 weeks of taking over note. I get approval on offer, they email me and say it's approved but their "investor" will only allow 5% total commission. I get approval letter in next email. 4-5 hours later I get an email from someone else at company stating that I need to sign an addendum to send 1% of commission(so that is how it goes from 6% down to 5%) to this separate entity as a "referral fee" what the heck! this exact verbiage below in the email she sent me last night:
Hello Craig,
Attached you’ll find a copy of our Master Listing Agreement and Addendum. Typically, all of our short sales are required to go through our existing real estate network, but what we do when properties come to us already listed/contracted is give you the chance to join our network! This allows you the opportunity for additional assignments from loans we purchase in the future. The Entra Addendum is required by our company policy, and it gives us fast turnaround time on the closing of this transaction. Thus, please review, sign, and return the documents to me. If you have any questions, feel free to call or email Jakki or me with any questions.
Please also send me the title contact information, so I can contact them when closing comes around.
How is this even legal! This other company did nothing to market home, nothing, I just handed them the offer on a silver platter! Anyone else get around this? I swear, a few years from now, there is going to be HUGE class action lawsuits against companies that are doing this, they can't just randomly modify a contract and take extra like this!
I don't know if it matters, but I find it interesting.
Entra Asset Management & BSI Financial are both housed at the same location and owned by the same owner:
Gagan Sharma
1425 GREENWAY DRIVE SUITE 400
IRVING TX 75038
ooo this is good info!!
Thanks for the info. I just got a short sale listed, but when I sent the offer to BFA, they said that the loan was released over to BSI. Now I have to start all over again, and not only that but I ma learning that that after issuing approval, they are asking for 1% kick back?
Jorge L Valdovinos
yep, I am having a similar issue. They want the referral fee in addition to the reduced commission of 5%!!! WTH! And their BPO values are inflated. Mine was also an FHA with BofA, now non FHA. Negoitating an offer now. Can you update me with your progress? How can they charge a referral fee!!?
I tried as hard as I could to negotiate out of the 1% fee on 2 deals but lost. Its take it or leave it. They got me on the figuciary duty to the owner to close on an approval, and they know it. The only good thing was they were rational and far easier to deal with than BOA, Chase, NationStar and so on…
I just closed a transaction with them and they did require the 1%. But honestly, they were the easiest short sale I have ever done. I've never had a negotiator actually email me for updates on when the closing is happening, etc. I meant, they are seriously on top of it, I guess maybe because they are getting that 1%. I will take their short sales all day long. If only BofA and others were this easy..
© 2024 Created by Short Sale Superstars LLC.
Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.