Chase cut my commission, but will give seller $30,000!
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
Replies to This Discussion
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Permalink Reply by Lisa Cedillo on
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Billy, no one is telling you not to do anything, as a matter of fact, if you read my last statement, it was to submit a commission agreement with 3% to the listing agent, for her to submit to the bank, and see what comes of it. I do agree with your frustration and that it seems illegal for the banks to keep cutting into our pay. All I'm saying is submit a formal commission agreement demand with the percentage you feel is fair. It won't hurt, and it may work. Good luck!
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Permalink Reply by Billy on
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I understand. I just want to be clear... it CAN BE ILLEGAL under some circumstances for the banks/servicers to cut our commission. It doesn't just seem that way. (And maybe that's not what you were trying to imply... it's just that some Realtors don't realize this fact and they're losing out.)
Thanks Lisa,
Billy
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Permalink Reply by Jeff Payne on
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Sure it can be illegal. If it is a Fannie or Freddie loan they pay 6%. Keep in mind that they have easy ways to get around it. The most common one is that the NET needed is 1% short on your offer, the bank needs 1% more and the buyer can pay it or the agents can pay it. It happens.
Some realtors dont realize the fact that they are losing out? Come on, really? Some realtors also realize that there is a bigger picture and as a listing agent they realize that .5% is very small in grand scheme of things and that they were hired to save their seller from foreclosure.
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Jeff, you went from
Billy, slow down, who said the bank was doing something illegal?
and
OK, please explain who the seller would be acting illegally?
to
Sure it can be illegal.
I'm done arguing about this. I'm not getting "pissy" when somebody tries to answer me, I'm getting "pissy" because you are attempting (probably unknowingly) to mislead me. I should have never tried to give a back-story. The question was, how can I find out for certain if this is a GSE or HAFA short sale? There are rules and regulations that directly effect me as a party to this transaction, so I should be able to find out if those rules apply. You can't get a speeding ticket on a street with no posted speed limit!
Billy
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Permalink Reply by Mike Ashcraft on
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Uh, yes you can.
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Thanks Lisa. Technically, it's my wife that's the buyer, and I am her agent. Sorry for the confusion. The last house we bought like that, I receive a full 3%, and that was on an investment. We don't ask for any closing credits either though, FWIW.
I probably wouldn't blink over $1,500 added to the price, but $1,500 out of my pocket is a little harder to swallow, especially after taking $70k out of our bank account to buy this house.
If I find out that the seller is, indeed, acting illegally, I'm definitely not going to let it go.
Thanks for the input,
Billy
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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Be glad they didn't cut the commission on your side to -0- - Take the hit and move on......
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OK, please explain who the seller would be acting illegally?
Also I would love to hear how you disclosed that you are the buyer and the agent. Was that on the purchase contract or was there an arms length transaction affidavit signed?
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See above. I've answered both questions (you may not have noticed).
Billy
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Billy -
The bank (Chase) chose to approve the short sale - for whatever their reason is - the way they did. Whatever the deal is between the lender, Chase and the Seller, is their business and NOT yours.
You have some choices;
1) Take the deal the way it is and move on - are you flipping this property?
2) Withdraw your offer and move on to find another property ASAP
3) If you really need this $1,500 in order to close on the property, there are bigger issues in play........
Why do you care about the $30,000 the seller is receiving. There's probably plenty you do not know about this transaction. Maybe the seller is ready to file BK and stay in the property and this is a method for Chase to get them to move on so the proeprty can be disposed of (to you). Maybe there are some other legal wranglings between the seller and Chase. That $30,000 guarantees they will be out when you close.
Who knows - and quite frankly, who cares.
Make sure to disclose your wife is the agent and you are the Broker / Buyer. Chase will reverse that sale in a heartbeat if they find out you didn't disclose properly.
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LOL. Actually, there is plenty that YOU don't know about the transaction. I'm not going to bother though.
Billy
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I am absolutely positive there is much we all don't know or ever will about THIS transaction!
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