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
-
Permalink Reply by Billy on
-
Already signed it, after signing a disclosure similar to the one I posted earlier. We're not in conflict.
Billy
-
Permalink Reply by Jeff Payne on
-
You sure make alot of assumptions and quite frankly what the seller is doing is none of your business.
-
-
Then walk away if you don't want the house. It is pretty simple. You asked questions and all of the answers were pretty much the same. Who made you the morality police for the seller? I would love to see the arms length transaction affidavit that you signed, because I don't believe that you signed one because your story keeps changing
-
-
Ok, now we are getting somewhere.
Next thing is how was compensation to the buyers agent advertised in MLS? Did it say you would be 3% regardless or did it say if commission is reduced, agents agree to split?
-
-
Wait, wait, wait... you accuse me of lies and deception... I prove that I'm not lying and that your assumptions are wrong, and you just move on to another point? LOL!
I'm sooo done wasting time here. I'll come back and post the outcome in case it could be helpful for others.Thanks to those with good intentions,
Billy
-
-
Nope, I accused you of not giving us all of the information that we need. Now that you are starting to give us information, we can help but until then you just wanted us to tell you want you want to here.
-
Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
-
The CA Standard MLS Rules include the following with regard to Short Sales:
Lender Approval Listings.
Compensation offered through the MLS to cooperating brokers on listings which require lender approval (commonly referred to as "short sale" listings) is for the amount published therein unless the listing broker indicates on the MLS the following: (a) the fact that the sale and gross commission are subject to lender approval; and (b) the amount or method by which the compensation offered through the MLS will be reduced if the lender reduces the gross commission. This section does not allow an additional reduction from the commission offered for items such as a short sale negotiator fee or other administrative costs of the transaction. Any reductions from the commission offered for such items should be factored in as a reduced amount the listing broker initially offers to a cooperating broker and may not be made a condition of the offer.
If the Listing Agent included the amount or method by which the coop compensation would be reduced, then according to the Rules, it can be reduced by that amount. Examples: "Final Lender approved commission to be split 50/50" is MUCH different than "Any reduction in commission by Lender is to be reduced equally to each Brokerage".
-
-
Thanks Thom. Ours is similar
-
-
No Thom, don't you get it, Billy is a victim :)
-
-
LOL - BTW - thanks for the compliment earlier :-)
-
-
In your mind you are not but as far as an arms length transaction you certainly could be in conflict.
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons