Replies to This Discussion

Permalink Reply by Stephanie Herbert on March 4, 2010 at 11:06am

Edward, I have sent in information from a short sale scenario that I am currently working where the negotiator was unwilling to pay customary transfer taxes. I sent an email through equator stating that it was customary in the state of MD for the buyer and seller to split transfer taxes equally and that the contract called for such a split. I have had several counter offers since then and the transfer taxes are always included with the seller side of the HUD 1. I would just send the information that what you are asking for is customary or required in your state. Good luck

Permalink Reply by Kent Dills on March 4, 2010 at 11:26am

Yep, agree with Stephanie!

Permalink Reply by Edward Codelia on March 4, 2010 at 11:35am

Thank you Stephanie, I will go back with that.....

Permalink Reply by Darla Maddalone on March 4, 2010 at 12:35pm

Hi Edward,

I would take it one step further...if the fee are REQUIRED, I would provide that documentation and get it to the BofA negotiator.

Good luck on your sale.

Permalink Reply by Edward Codelia on March 4, 2010 at 12:51pm

Thank you Darla
The purchase contract states the fees required to be paid by seller, so I will resend in to the negotiator, I will also have to contest the new value. Thanks for the tips :)

Permalink Reply by Katerina Gasset on March 4, 2010 at 4:20pm

All fees are negotiable unless you have some state law that actually states a prohibition on a fee to be paid for by a buyer. That would be very strange. Here in Florida the transfer fee is only $125 so I would be the first one to say, let the seller pay the fee. Of course, in Hawaii, the fee might be something totally different. Anyways, why can the seller not pay the transfer fee?
Chase just countered us also on a deal that they will not pay the transfer fee. Simple solution- our seller is going to pay it.

Permalink Reply by Katerina Gasset on March 4, 2010 at 4:21pm

Darla,
Even if the fee is required the bank is not a party to the contract so the bank does not have to pay any of the fees that they don't want to pay. All the fees are coming off of what they are going to net. The law has little to do with the net.

Permalink Reply by Darla Maddalone on March 4, 2010 at 4:39pm

Katerina,
Yes, that's correct the bank isn't a party to the contract However, when I read Edward's question and he said "required" I take that to mean required by law or statute in Hawaii, not a clause in the PA. If Hawaii by law requires the Seller to pay a fee (Edwards words), I'd be getting a copy of that law and providing it to BofA. And of course we all know that is no guarantee....just a good persuasive reason. No wonder short sales are such a challenge!

Permalink Reply by Edward Codelia on March 4, 2010 at 4:49pm

OK, these fees are law requred fees in the transfer of real property paid by the seller. Yes, the bank is not a party to this transaction other than approving the short, and yes it reduces the net. The seller can not pay the fees because he does not have the money....
when the net is reduced the sellers 1099 is increased and therefore his tax liability is higher and since the bank is not a party to this transaction they really are not in a position to dictate fees. They do not have to agree to pay anything, and if they would say that, I would be happy to pursue every angle possible, and expose the bank for that position.....where is the help for the homeowner?

When I submit the contract it is with a HUD and it shows the fees per the sale. This is one of the main problems, what works for Nevada or Arizona, does not work in Hawaii, and since there is no corporate presence in my state, most lenders do not have a clue....

I have submitted the legal parts back to the bank and am going to pursue this through some other channels and asked for a re-evaluation......