Short sale negotiator and Atty- last minute, buyer pays from 3% contribution Part 2
This is a contunuation of my broker's post Aug 22. I represent the buyers. We are 2 days from closing and 3rd party negotiator presented the following on their company letter head trying to get paid. They never disclosed how they were getting paid during our negotications nor was it noted in the MLS.
(“S & S”) in cooperation with Christian, will negotiate the short sale for the above referenced property. As part of its services S & S will:
-Negotiate the short sale with all note holders.
-Negotiate with Associations as may be needed.
-Coordinate document gathering.
-Coordinate efforts with sellers, buyers, realtors, attorneys and mortgage representatives.
-Work on extensions if needed and desired by all parties.
-Keep all parties informed of the process throughout and/or be available for updates as
needed.
As compensation for its services, S & S, Inc. will charge the releasing note holder a fee of up to Three Percent (3%) of the sales price (“Negotiation Compensation”). S & S, Inc.’s negotiation compensation will be collected from the releasing note holder at the time of closing and not from the parties to the transaction or their agents. The parties acknowledge and agree that S & S’s compensation may appear on the buyer's side of the settlement statement, the seller's side of the settlement statement, or both. If any part of the negotiation charge is contained on the seller’s side of the settlement statement, the seller understands and agrees that the charge was negotiated with the note holder specifically for short sale negotiation purposes, and the seller would not otherwise be entitled to receive those funds as part of the closing or outside of closing. If any part of the negotiation charge is contained on the buyer’s side of the settlement statement, a credit will be given in an amount greater than or equal to the amount being charged. The resulting net charge to the buyer will be $0.00. The buyer understands and agrees that the charge was negotiated with the note holder specifically for short sale negotiation purposes, and the buyer would not otherwise be entitled to receive those funds as part of the closing or outside of closing.
Seller:___________________________ Buyer:_________________________________
Seller:___________________________ Buyer:_________________________________
Listing Agent:_____________________ Selling Agent:___________________________
The buyer's do not want to sign it. Can the negoticator hold up closing? Need help. BTW the buyers are financing.
Replies to This Discussion
-
Permalink Reply by Joseph Alfe on
-
We have a written fee agreement disclosed to buyer UP FRONT. I agree with Smitty, tell this negotiator to beat it, and find another title company as well. Where in FL are you? I do business in parts of Florida and I have worked with some fine title companies there.
-
Permalink Reply by Karen Chesley on
-
I'm in the Florida Keys.
Do you know Solutions & Settlement in Ft Lauderdale?
-
Permalink Reply by Jeff Payne on
-
BTW, I could not find an S &S Inc on sunbiz.org that is an active Florida corp.
-
Permalink Reply by Beverly Cibulsky on -
Jeff didnt find it either, at not least active. So it would be hard to tell if any officer/owner etc, has the proper
license to do short sales. Now maybe Karen needs to look up the title company on Subbiz too! See if they have an attorney on board!
Frankly, when are buyers agents gonna "qualify the listing agent and short sale, before exposing the buyer to these types of issues! The seller, buyer, and buyer agent can get hurt.
I believe there are certain standards title companies must follow, and if it is not any attorrney/title, hopefully they are processing like they should be "per the contract" "per the approval letter" Interesting, how and at what point do these "third party negotiators" come into play?
I hope this situation works out for both the Buyer and Seller! This is most important!
-
-
We closed today. They took the 3% on seller line 507 on the HUD as closing concession goin to their company. Not sure how that got past Chase review of final HUD since there was no credit to the buyer. Hummmm.
I did not use the real name of the company in the 1st post.
-
-
Karen, by the way 3% is a Stiff fee. What was the sales price/fee?
-
-
3% is standard, especially when a negotiator does most of the real work, however, If they mis appropriated the credit, then that is a potential RESPA violation on the title company. I am willing to bet this was the title companies "In House" negotiation dept. A seller credit MUSt be paid from seller to buyer on HUD, or it isn't a seller credit and you cannot call it that.
-
-
3rd party negotiator got short sale lender to agree to 3% concession for closing costs however never told buyer. Buyer found out when his lender wanted an addendum for the 3% concession to buyer. Buyer to not feel comfortable with agreeing to pay for services he did not receive.So the title company put the 3% on final HUD with the Closing cost concession going to the negotiator company. You are saying this could be a RESPA violation? They should have given the 3% back to the short sale bank if it did not go to the buyer?
-
-
Sale price is $181,000
-
-
this is the business at the same address
-
-
Here is there short sale package along with the contract addenda they use, I dont see anything about buyer paying for their services.
-
-
Jeff, good research. This is typical of many of the 3rd party firms here. They will usually try to get seller concessions to the buyer, and take their fee from there. This should be accomplished by: 1) Addendum to contract specifying the consessions, and an agreement from buyer allowing the fee to come out of the consessions. This can cause issues with the buyer's lender. 2) When they can't get this done, at the last minute they will try to hold the deal hostage and try to demand payment from the buyer/real estate agents. NOT the way to do business. There are of course, 3rd party firms that disclose everything up front, with signed fee agreements.
- ‹ Previous
- 1
- 2
- 3
- Next ›
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons