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 Billy on
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Do YOU have the arms length transaction agreement in front of YOU? I love how you say that I AM making assumptions! My goodness, what more do you want me to do? Do you want to see the disclosure? Would you like the negotiator's phone number so that you can check with her personally?
Billy
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Permalink Reply by Jeff Payne on
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Funny, you keep changing your story about how everyone is cheating you. Yes I would love to see the arms length transaction form that you claim you signed. You can email it to me at [email protected] if you have it or post it here for all to see
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Sam, that is good observation. This is certainly a case of there are 2 sides to every story and the truth lies somewhere in between.
Never understood why an agent would be a secret agent and give a fake name on here until now :)
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Why WOULD I give my full name? I'm not looking for business. I'm not looking for friends. Posting your full name on the internet is a really bad idea... especially when your home address is published for everyone to see.
Billy
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Permalink Reply by Bryant Tutas on
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Billy. Your issue should really be with the listing broker. As standard practice in my company we do NOT reduce the co-broke...ever. Now if you agreed for the commission to be reduced if the lender didn't pay the fill commission to the listing broker then that is really the issue. Isn't it? If you didn't agree then I would hold the listing broker accountable for the co-broke offered. If you did agree then the battle is already lost.
This really has nothing to do with the seller or with Chase.
Having done quite a few Chase incentive short sales I am almost positive that this is not a HAFA deal. It may have qualified for HAFA but Chase chose to place the deal in their incentive program because it's easier for them to approve.
Unless the seller authorizes you to speak to Chase there is zero you can do.
And to all please keep on topic. No need for mud slinging.
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Thanks Bryant. What exactly makes you say that it's not HAFA? Do you deny that the two programs CAN be combined?
Billy
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Do you deny that the home is non owner occupied and that HAFA is for owner occupied only? What difference does it make if the two can be combined if this does not qualify for HAFA anyway?
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What is it that makes you believe it is a HAFA sale? Why would it matter if they could be combined?
We are trying to help you here and just telling you want you want to hear doesn't help at all.
You hangup originally was that Chase cut your commission but is giving the seller $30,000. All of this over $1500.00. It is a simple decision and from the sounds of it you are not hung up on this house anyway. Let the seller go and find a new home and let them move on with another buyer. I appreciate when people stick to their principles and if you believe in what you think to be true, then stick to your guns and walk away
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Billy. Based on my experience and playing the odds and the fact that they asked for commission reduction. Odds are it's not HAFA. But of course I could be wrong :)
But really the point of my response was to help you redirect your complaint to the person that may be able to assist you. The listing broker. It's the deal with him that holds the solution to your problem.
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Oh, the solution was sooo simple I'm embarrassed that I didn't think of it! (It's a good thing I didn't post my real name!) If it's being processed as a HAFA short sale, the extra $3k will be on the HUD! Of course, it will be pretty late in the game at that point, but that will be a definitive answer at least.
If it ends up being HAFA, I'll let you guys know (and I'm sure I'll have to post scans of the HUD, the commission check, the seller's bank account, and whatever else Jeff wants).
Peace,
Billy
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Certainly cant blame you for not posting your name :) Still dont know why you really care or what relevance there is of how much the seller is getting. Title should be able to send you the HUD.
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Permalink Reply by Tara Samney on
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Billy - Not able to read al these comments to see if this was aready addressed...BUT....it should come done to what was in the MLS - were you offered 3% or 1/2 of total commission? What was in the the offer? 3% or half? At least here in VA we are required to adhere to what was offered in the MLS. If the seller is trying to make you split the 5% say no- that MLS and offer were for 3% and take it to broker if you have to. It has nothing to do with the lender- the seller and the brokerage promised to pay you that. Go after them for it.
If it was for 1/2 and the approval letter was for 5%....I don't see how anything else would relate.
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