Charging to facilitate a short sale - Short Sale Superstars2024-03-28T14:12:14Zhttp://shortsalesuperstars.com/forum/topics/charging-to-facilitate-a-short-sale?groupUrl=shortsalecommander&feed=yes&xn_auth=noI put my separate entity's na…tag:shortsalesuperstars.com,2013-01-05:3468065:Comment:2879552013-01-05T23:53:58.580ZToni Nicholashttp://shortsalesuperstars.com/profile/ToniNicholas
<p>I put my separate entity's name and "short sale processing fee" on the tentative HUD, and I make sure the Closing attorney abides by the HUD I have negotiated and submitted. If you don't check, and yes, this has almost happened to me AFTER all my work, the Closing attorney CAN change the HUD and cut your SS fee out without your knowledge. Have the Closing attorney send you the Final HUD before closing, they may cut your fee out because a) not all attorneys know how to process short sales, b)…</p>
<p>I put my separate entity's name and "short sale processing fee" on the tentative HUD, and I make sure the Closing attorney abides by the HUD I have negotiated and submitted. If you don't check, and yes, this has almost happened to me AFTER all my work, the Closing attorney CAN change the HUD and cut your SS fee out without your knowledge. Have the Closing attorney send you the Final HUD before closing, they may cut your fee out because a) not all attorneys know how to process short sales, b) not all attorneys like the fact that you are being paid "extra" and don't think you've worked for it, and c) because they can. So, it's wise to CHECK THE FINAL HUD! ...ALWAYS!</p> ..probably because it's a sep…tag:shortsalesuperstars.com,2013-01-05:3468065:Comment:2880042013-01-05T23:43:14.561ZToni Nicholashttp://shortsalesuperstars.com/profile/ToniNicholas
<p>..probably because it's a separate company. I have another "entity," but when they realize it's still me, they usually say no. So, you can either create an entity and hire someone to work your short sales totally separate from your brokerage, or have the buyer be responsible for the negotiation fee.</p>
<p>..probably because it's a separate company. I have another "entity," but when they realize it's still me, they usually say no. So, you can either create an entity and hire someone to work your short sales totally separate from your brokerage, or have the buyer be responsible for the negotiation fee.</p> I've been doing this as well.…tag:shortsalesuperstars.com,2013-01-05:3468065:Comment:2880012013-01-05T23:37:03.140ZToni Nicholashttp://shortsalesuperstars.com/profile/ToniNicholas
<p>I've been doing this as well. The banks used to pay for short sale negotiation fees, but when they began saying the big fat "NO," while demanding that I upload this or that, and "oh, and get me that too," while they gleefully threaten you and your seller with foreclosure, I haven't backed down. I absolutely WILL NOT work for free. Those of us who do short sales do a LOT of work for the banks and they demand much from us to process the short sale. And, if it weren't for us, they'd have far…</p>
<p>I've been doing this as well. The banks used to pay for short sale negotiation fees, but when they began saying the big fat "NO," while demanding that I upload this or that, and "oh, and get me that too," while they gleefully threaten you and your seller with foreclosure, I haven't backed down. I absolutely WILL NOT work for free. Those of us who do short sales do a LOT of work for the banks and they demand much from us to process the short sale. And, if it weren't for us, they'd have far more REO's on their books. Not only do you have to be a psychologist to deal with the sellers, you have to go back and forth to collect all proper documents, (especially if your sellers do not have access to faxes or scanners), manage, document and upload and/or send all paperwork required when they require it. I ABSOLUTELY will not do it for free. This work goes way beyond the scope of work as a listing agent/broker. So, when they began saying "no," I negotiate for the seller concession on behalf of the buyer and the negotiation fee, which is now the buyer's responsibility, and it's taken off the buyer side of the HUD at Closing. I have drawn up a separate statement that the buyer signs and agrees to pay the negotiation fee. I used to only charge the fee if I was successful in obtaining the seller concession, but no longer. I have begun notifying any prospective buyers before an offer is even made - through the MLS. Therefore, they know, up front, the fee they will be responsible for, and can then incorporate that into the price they offer and the amount of their deposit. That's the only way I do short sales now. And, it actually gets me angry when I STILL hear about an agent or co-broke agents taking a cut in commissions because of last minute changes to the HUD in order to save the sale and Close. Think ahead people! ...Stop being used! The seller concession credit and the neg. fee (debit) goes on the buyer's side. The buyer receives whatever credit is left from the credit I've negotiated which is then applied to the buyer's CC, negotiation cost, and pre-paids. The seller concession, as stated on my P&S, is not guaranteed. But, if it's negotiated, and it almost always is, the buyer still wins - due to my successful negotiation - because the bank WILL pay a seller concession, but not a "negotiation fee." If they do not, especially if last minute costs pop up, and you end up using the seller concession for whatever, the agents commissions are NOT cut. You use the seller concession to pay for last minute whatever, the bank has already agreed to the "NET," and the buyer has already agreed to pay your SS fee. So, play the game, and get paid for your work! - I'm in Massachusetts, for the record, but no matter what state you're in, just remember, a separate agreement is a stand alone contract between you and the buyer. The buyer's lender may, usually does, object to the negotiation fee being part of the P&S, so that's why I created a stand alone contract. The P&S only states that the seller concession is not guaranteed, and the buyer's underwriter can't object to that. Stop allowing the banks to take advantage of you! ...my two cents... Good Luck in Texas! ..gotta love that RED state!</p> Colorado.tag:shortsalesuperstars.com,2012-08-09:3468065:Comment:2580922012-08-09T20:07:49.762ZJustin Berryhttp://shortsalesuperstars.com/profile/JustinBerry
<p>Colorado.</p>
<p>Colorado.</p> Justin,
What state are you i…tag:shortsalesuperstars.com,2012-08-05:3468065:Comment:2571242012-08-05T16:07:21.928ZStephanie Granthamhttp://shortsalesuperstars.com/profile/StephanieGrantham
<p>Justin,</p>
<p></p>
<p>What state are you in? I am looking to do exactly what you are doing. My broker is determining if this is something we can do in Texas.</p>
<p>Justin,</p>
<p></p>
<p>What state are you in? I am looking to do exactly what you are doing. My broker is determining if this is something we can do in Texas.</p> We charge the buyer. Write i…tag:shortsalesuperstars.com,2012-05-09:3468065:Comment:2335952012-05-09T15:46:23.336ZJustin Berryhttp://shortsalesuperstars.com/profile/JustinBerry
<p>We charge the buyer. Write it in to your agreement with the seller that they authorize you to seek additional compensation from the buyer. Then tell all brokers and buyer that you change an additional $x to process it because they are separate duties from traditional agency. Write it in to purchase contract, "Buyer to pay $x to ___."</p>
<p>No more having to worry about messing with commissions or dealing with foreclosing lender cuts. Now you're just negotiating with other brokers and…</p>
<p>We charge the buyer. Write it in to your agreement with the seller that they authorize you to seek additional compensation from the buyer. Then tell all brokers and buyer that you change an additional $x to process it because they are separate duties from traditional agency. Write it in to purchase contract, "Buyer to pay $x to ___."</p>
<p>No more having to worry about messing with commissions or dealing with foreclosing lender cuts. Now you're just negotiating with other brokers and buyers. </p>
<p>This has been our system for the last 3 years and works great!</p> Hi Jeff,
No, I haven't tried,…tag:shortsalesuperstars.com,2012-05-09:3468065:Comment:2334992012-05-09T13:36:46.604ZDiane Donnellyhttp://shortsalesuperstars.com/profile/DianeDonnelly
<p>Hi Jeff,</p>
<p>No, I haven't tried, as I am just starting to facilitate (not negotiate, as that is illegal in MD) my first ones now. I am going to look into the fees b/c they really are fees to pay for services above and beyond what is outlined on a listing agreement. </p>
<p>Seth Campbell is amazing. I have been fortunate enough to take a mastermind class that he ran. We are very lucky to have him!</p>
<p>Do you negotiate your own SS's Jeff? If so, do you charge to do it on a…</p>
<p>Hi Jeff,</p>
<p>No, I haven't tried, as I am just starting to facilitate (not negotiate, as that is illegal in MD) my first ones now. I am going to look into the fees b/c they really are fees to pay for services above and beyond what is outlined on a listing agreement. </p>
<p>Seth Campbell is amazing. I have been fortunate enough to take a mastermind class that he ran. We are very lucky to have him!</p>
<p>Do you negotiate your own SS's Jeff? If so, do you charge to do it on a HUD?</p>
<p></p> Diane have you tried placing…tag:shortsalesuperstars.com,2012-05-09:3468065:Comment:2335862012-05-09T13:32:42.294ZJeff Paynehttp://shortsalesuperstars.com/profile/JeffPayne
<p>Diane have you tried placing these fees on the HUD to see if they will pay you? Is it legal in your state for an agent to charge these fees? BTW, I was in your area a few months ago at a class that my friend Seth Campbell taught! What a great leader your region has! </p>
<p>Diane have you tried placing these fees on the HUD to see if they will pay you? Is it legal in your state for an agent to charge these fees? BTW, I was in your area a few months ago at a class that my friend Seth Campbell taught! What a great leader your region has! </p> I had one file that they got…tag:shortsalesuperstars.com,2012-05-08:3468065:Comment:2333232012-05-08T20:44:28.535ZDiane Donnellyhttp://shortsalesuperstars.com/profile/DianeDonnelly
<p>I had one file that they got paid 9%!</p>
<p>It is more likely that they charge 1-2% and they've not been denied.</p>
<p>I believe you must work with an ethical 3rd party so they don't reduce your commission in order to be paid from the bank.…</p>
<p></p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/3131605108?profile=original" target="_self"><img class="align-full" src="http://storage.ning.com/topology/rest/1.0/file/get/3131605108?profile=RESIZE_1024x1024" width="721"></img></a></p>
<p>I had one file that they got paid 9%!</p>
<p>It is more likely that they charge 1-2% and they've not been denied.</p>
<p>I believe you must work with an ethical 3rd party so they don't reduce your commission in order to be paid from the bank.</p>
<p></p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/3131605108?profile=original" target="_self"><img width="721" src="http://storage.ning.com/topology/rest/1.0/file/get/3131605108?profile=RESIZE_1024x1024" width="721" class="align-full"/></a></p>
<p></p>
<p></p> Diane, you may already have y…tag:shortsalesuperstars.com,2012-05-08:3468065:Comment:2333102012-05-08T19:21:26.620ZJeff Paynehttp://shortsalesuperstars.com/profile/JeffPayne
<p>Diane, you may already have your answer. What line item and charge does your current 3rd party negotiator charge and what do they call it? How much is your 3rd party getting paid on these deals?</p>
<p> </p>
<p>Diane, you may already have your answer. What line item and charge does your current 3rd party negotiator charge and what do they call it? How much is your 3rd party getting paid on these deals?</p>
<p> </p>