Nearly 9 out of 10 of my short sales, the lender cuts the commission from 6% to 5%. I am sick of this. They know they have us by the short hairs and do it automatically. Now I have GMAC being represented by IMPACT that wants to take 1% of my 6% commission. They want me to sign a new fee agreement and commission disbursement form. What can I do and how can this be stopped.
Original Post: Nearly 9 out of 10 of my short sales, the lender cuts the commission from 6% to 5%. I am sick of this. They know they have us by the short hairs and do it automatically. Now I have GMAC being represented by IMPACT that wants to take 1% of my 6% commission. They want me to sign a new fee agreement and commission disbursement form. What can I do and how can this be stopped.
I am having the same situation -- the first time I've experienced this -- but with a different company (RCS & Catalyst). Here is the first email we received from this guy:
Wanted to confirm you are still the Listing agent on the above property. If so Catalyst is now working on behalf of RCS with the managing of this listing for faster processing with this Short Sale. I have attached the RESNET/Referral Agreement needed to move forward. Catalyst will assist with approved Reductions Marketing Strategy etc. Let’s get this property sold. I have the Interior BPO back and ready to talk reductio.
Incidentally, the same guy, Anton Wimbish,works for RCS AND Catalyst!! It's a racket, a ripoff. Servicing companies trying to skim 1% by digging into Realtor pockets!!
I'll bet you $5 that GMAC owns IMPACT.
Maybe try to file a complaint with the OCC?
Jeannie, They all try to cut commssions. If the Servicer/Lender hired them it is their responsibility to pay them.
It this for a property you already have listed, or is this for a referral that they have asked you to list?
Impact, I am told, holds the actual note from GMAC. They are the ones doing the short sale too! Thanks for your imput. Stay tune as I am going to fight this to the bitter end.
I ask for 7% on the listing and HUD and they reduce it to 6%.
There are a couple of things to look at. First: are you double siding? If so, your commission will more than likely get cut. If you are going to double side a transaction, see if your broker or another agent is willing to represent one of the parties. In my experience, the realtors I work with generally get a better split on their commission if their broker represents one of the parties.
Second, what is the going commission rate in your area? For FHA and HAFA the real estate sales commission shall be what is customary for the market, but the lender may not require that the commission be reduced to less than 6%. HAFA Guidelines and FHA Guidelines.
Third, who is the investor? If the investor on the mortgage is FannieMae or FreddieMac, then your commission will not be reduced below 6% which covers about 80% of the mortgages.
So between HAFA, FHA, Fannie, and Freddie, your commission should never drop below 6%. Often I get a negotiator for the bank who either does not know what the regulations are or is just being a little over zealous for the bank. Defend your commission, especially on a short sale, because you will more than earn that commission. Do not be afraid to tell the bank.
I always defend my commission and it works!
I can't even remember the last time a lender tried to cut my commission. Maybe it's because I deal mostly in low end properties of less than 150k? For me the lender cutting my commission is a non issue.
Bryant, same here. My average sales price is 165,000 and I rarely ever see them try to cut commissions
Same here. Never had it happen. Mine range $60,000-$250,000. I'm very careful to change the 5% to 6% in Equator each time...if that's helping.
US Bank is currently trying to cut mine to 5% on a $113,000 Home. First time I've had a Servicer attempt this in awhile.