How to stop short sale lenders from automatically cutting our commission
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.
Replies to This Discussion
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Permalink Reply by Cameron Novak on
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1% is better than nothing too. If you give the lender the option, they'll take it.
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Permalink Reply by The Negotiator on
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maybe you're worth only 1%, but, I'm worth 2%.
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You're the one discounting your services pal. you can only charge what you're worth.
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Permalink Reply by Natalie Arndt on
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I live in New Mexico and I enjoy great working relationship with ethical superb real estate attorney and wonderful tax accountant. New Mexico is a judicial state foreclosure and we frequently use attorneys to postpone foreclosure.
I find that there are great people who benefit our lives in all professions and I appreciate their expertise.
I would like to see our forum stick to helping each other with different aspects of short sales. When people start using the forum to advertise their services it reflects poorly on them.
Natalie Arndt BS, MA, CDPE, CDRS
ps I do not handle anyone else's short sales but my own and they are a handful.
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Permalink Reply by Jeff Payne on
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Julie, good question.
Fannie Mae and Freddie Mac both have lookup tools on their site. I believe that you will need SSN for Freddie to verify but not with Fannie.
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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ING is now stating they will not pay more than 4% total....... AND, it is required the transaction is closed using their selected Escrow and Title Companies.
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Permalink Reply by ShirleyCoomer on
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I just closed a Short Sale with ING and they would only pay 3% since I had both the seller and buyer (which is permitted in AZ with disclosure signed for duel agency). They did require I use Placer Title in CA,
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ING can pound sand if they're not going to pay my standard fee (I'm doing twice the work of a standard sale).
P.S. You should never send in a file double-ended... get another agent in your office on the other side.
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Permalink Reply by Michael Schneider on
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Agreed, twice. Try to update.
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Permalink Reply by Barry Levy CDPE on
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I doubled ended a short sale for about $200,000 and the lender tried to get me to take 4% instead of 6. I told them that I had maneuvered a bidding war and if the property was resold to another buyer to expect 10% less, and no I would not cut my commission. 6% was paid. If you do a good enough job of getting top dollar for the property you are in a stronger negotiating position.
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Permalink Reply by Donna Clayton, Broker, MBA on
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Are you handling your own negotiations, or are they being handled by an attorney? I kept having the same experience until I began negotiating my own short sales and preparing all preliminary HUD1s until just prior to closing, at which point I hand everything over to the attorney/closing agent. Perhaps it's just pure coincidence... but ever since I began handling my own files exclusively (past 2 years), I have NEVER had a single cut in my commission -- 6 percent (or more!) in every short sale.
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Permalink Reply by Lisa Woolverton on
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I am on the buyer's side and AHMSI Servicing sent the approval letter which included language saying the brokerage commission will not exceed 5% (blank filled in). It's a rotten deal...what are we supposed to do, say No? They realize how easy it to pick on us--it's like taking candy from a baby. Additionally, they are charging my buyer a $600 "servicing fee". They are no better than pickpockets.
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