I'm the broker/owner of a small firm. My wife and I are attempting to purchase a $300k Chase short sale for our primary residence. We got the approval letter a few days ago and I saw that they cut the commission from 6% to 5%. Well, that's a real bummer since we were going to use that money toward closing costs, but I'm used to it happening. Then I continued reading the letter to find that this is one of those Chase "incentive" deals and the seller is getting $30,000 at closing! This is after he sucked every last bit of equity out of the house at the peak of the market! That really put the commission thing into perspective!
I've been trying to find out if Chase is the investor or if it's a GSE and I've also been trying to confirm whether it's technically a HAFA short sale so that I know if Chase is even allowed to cut the commission at this point. The problem is, I can't look up the investor without the borrower's social security number, and I don't have access to the SSA/RASS/Alternative RASS/etc because I'm on the buyer's side. I mentioned something to the listing agent, and she claims that it's not a HAFA short sale, but I'm not sure she even knows what she's talking about. I also have a suspicion that the seller/borrower is going to take care of the listing agent from that $30k if she can keep us from making waves.
At this point, I want to contact the negotiator myself, but I want to make sure I have all the facts that I can get. I think Chase is just taking the 1% away because they can. They know that, under normal circumstances, an agent/broker has a conflict of interest where, if they threaten to walk away from the deal, they're working against their client's best interest. Especially when there is $30k on the line for the seller; if the agent killed the deal over 0.5%, the seller would go ballistic! I'm in a unique position where getting the full commission IS in my client's best interest. And besides all of that, giving this buyer $30k and shorting me (and the listing agent) $1,500 is just not right.
Any advice is greatly appreciated!
Billy
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If the listing or short sale disclosure noted a possible reduction in commission .. you are out of luck. However if the mls states 3% .. then 3% though shall receive and the listing agent might get stuck with 2% (at which point the nice seller could cover the agents even bigger loss with their jackpot check). I would forget about the $30k .. its irrelevant to the commission and a totally different and irrelevant consideration for the lender.
Darn, I'm so late on this thread. I haven't been on the site much lately and this was a good one. I have to agree with Jeff, Bryant, Sam an Tara.
I also have to wonder if there are those that just come here to stir the pot. Lately that seems very common. I think you guys hit the nail on the head as usual.
Two thoughts;
Many lenders do not permit agents who are purchasers to receive commission at all. By this standard, you are doing very well indeed. In this situation, I renegotiate the deal for more closing cost help.
Chase called us and asked us to do a short sale for one of their borrowers. They are giving the borrowers $30,000 and were happy to pay us 6%, even when we double ended the deal!
You guys are to willing to help someone that does not need help. The posting by "SAM" calling out the points to this (not all info known) transaction was beautiful. Billy is a work all to himself and it should remain that way, don't argue.
The listing agent should push to get 6.%...these loans have issues...they want to do a short sale.
As long as value is in line you can get anything you need..including 6%.
We have closed several of these... tell the negotiator " look you know there are skeletons in the closet on this loan or you wouldn.t be paying the seller to do this short sale ... my commission is 6% please send the revised approval letter so we can get this closed for you.
Good luck,
Robert
Pacific NW Short Sales
My listings are for 7% for short sales. There is so much more work to these than normal sales as you all know. I don't get it often but every once in awhile when they cut it it's cut to 6% not 5% due to starting at 7%.
Very good EJ !
HI Billy,
I represented a seller with the 30,000 incentive letter from Chase to cooperate with the short sale. at the end of the day we got him $33,000.00 the approval came back reading 30,000 chase incentive 3000 hafa relocation. I do not think that this file is a Hafa file based on what you are stating. I would look at the transaction as with any other deal does it still make sense less 1500.00 i would imagine so.
Oscar
I find very often in short sales they won't pay a commission to buyers agents if they are the buyer. If I were you, I'd be thrilled I was getting 2.5% when I know others have gotten 0%.
Good luck on your closing...
Susan in Sunny, Arizona
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