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 Kimberley Kelly on
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Wow..I give up parts of my commission, throw in Termite, throw in towels, tools whatever to make a short sale happen when I have the Listing side. I also charge 3.5% on list side specifically for that reason. Padding to help make it happen..after spending months working a file, the List Agent SHOULD get their full commission! You'd hold this up over $1,500? Buy your house..sounds like a good deal.
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Permalink Reply by Jeff Payne on
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Billy , I did see the links. Good stuff. As far as Chase denying them, yes they can, they do not have to participate in HAFA even if the borrower qualifies.
Regardless it doesn't have anything to do with you other than the commission being cut. It appears that you are doing well, buying investment properties and buying a $300,000 home with $70,000 down. This all comes down to how bad you want the home OR how hard you want to collect on $1500 of commissions. Do you push the issue and take the chance of losing this home or suck it up and get it closed. No one can make that decision for you.
BTW, Chase and EMC are one in the same, Chase owns EMC
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Wow, Thom is one of the most knowledgable short sale agents on this site. He tries to help you but you act like this? There is obviously alot about the transaction that you must not know and you are prepared to burn the house down just to prove you are homeless. Go ahead and kill the deal because if $1500 is going to make or break you, you can't afford the home.
I am starting to suspect that you are trolling otherwise as an agent you would actually sign in as agent and not an anonymous name.
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Permalink Reply by Billy on
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Thom didn't help me in the least and I'm not going to beat my head against the wall over the same argument. I could tell you all about how the seller claims to be living in the home and really doesn't, how he rents the house out for $2400/month under the table, how he's defrauding the bank (unless he lied to my wife and I without any potential gain), blah blah blah, but that doesn't matter.
Why do you assume we need this house so bad that we should just roll over? We're paying full market value and there are plenty of houses out there. Why should I be so appreciative that I'm paying full market value???
Oh, if only I were a troll...
Billy
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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So, if all of this so called "Fraudulent Activity" is ongoing and you are aware of it, doesn't that suggest you are cooperating with the seller's so called fraud? Just a question...........
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He is such a man of principle...going after Chase because they are committing an illegal act in cutting commissions and citing HAFA quidelines, when he knows the property is a rental, and not eligible for HAFA. Oh but, Chase thinks it is primary residence and not rental because of his disclosed lack of disclosure of the seller. So because the bank is being defrauded, he his upset that the bank is not following the "rules" of their being defrauded. Brilliant!
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Good one Sam - LMAO.....
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Permalink Reply by Mike Ashcraft on
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Do you realize that having this information and not doing anything with it potentially makes you an accessory to mortgage fraud? I'm puzzled that you will fight over $1500 for the principle of the thing and turn a blind eye to a bank being defrauded....
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Billy, I told you that you can look it up at FannieMae.com
I am still waiting to hear how the seller is doing something illegal. You have gone from the lender doing something illegal to the seller doing something illegal. You are getting pissy when people are trying to help you. To be able to help, we need the entire story and not just a small portion of it.
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If I said "seller" before, then I misspoke and meant lender/servicer. My apologies. The seller is doing something shady, but that doesn't affect me.
Billy
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Keep in mind that if you go forward from here, most likely Chase is going to make you sign an affidavit of arms length transaction.
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