Replies to This Discussion

Permalink Reply by Anna Mackey SDHS on March 10, 2010 at 10:06am

Amy, I never had to deal with FHA short sale (I guess it's a blessing)... But I have heard of scenarios where the seller will take a promissory note for the 5k (or however much) and then pay it off right after the closing with the help of the buyer who maybe buying some personal property from the seller, such as window treatments, chandeliers, detached appliances, pool equipment etc. that would not otherwise convey with the real property...

Permalink Reply by Julia Fishel on June 12, 2010 at 7:41am

It's ok if Realtor pays the difference ON the HUD? Will first allow?

Permalink Reply by Bryant Tutas on June 12, 2010 at 9:23am

Julia. Any monies paid have to be on the HUD. Usually the funds can come from any party involved in the transaction including the brokers. Just ask the lender. if they say it can't be on the HUD then just place it on the HUD as a POC (paid out of closing) item

Permalink Reply by Phil Hanner on June 13, 2010 at 4:57am

Others have properly addressed the work around. I will address commission cuts. I have been threatened with that before. Your commission is an agreement between you and the seller. If the deal is not netting them enough they can say NO to the deal. Make sure your commission is clearly stated in the listing agreement you fax in. One LM with a large servicing company that I met outside of work told me they get to keep a cut of whatever you give up, so don't do it. Be nice and ask if there is something you left out of the package? Was there something you did a bad job on? If you cut corners and did a bad job cut your fee. If your MLS costs have gone down, cut your fee. If your gas prices have been lowered - cut your fee. If you worked hard on this and did a good job - JUST SAY NO.

Loss mitigators are cogs in a machine. They have to ask.

I was doing a deal on a triplex and knew one BPO came in at 90K and another at 95K. The offer was 130K and the property needed two roofs and many repairs. The buyer had 1031 money he had to use. After the net and all had been approved, the LM came back and asked me to cut the commissions. I told the LM that the buyers agent and I were bound by contracts and neither of us were going to renegotiate with the buyer and the seller because we had performed. I told him this was an awesome deal for the lender and that it was foolish to give up $50K in extra cash for the client (35 in price and a minimum of 15 in holding and 4C costs) in exchange for 1% of the purchase price. I had fulfilled my obligation to my client. It was Tuesday and I told him thanks for his time and I would give him until Friday to change his mind. He called back in 48 hours and approved the deal.

Permalink Reply by Julia Fishel on June 13, 2010 at 5:59am

Phil - I love your Hutzpah and I've similarly taken a hard line though your approach is great and I'm going to use it. My situation here is that I don't have time to go back and renegotiate with GreenTree to take less (by time I do this I'll lose the BofA approval and with BofA so glad-happy to shut down files these days for no reason I'm not risking it) so my thought is that I'll just pay the $1500 difference to GT and go on with life. My Title Company is telling me that BofA must have the fact I'm doing this written on their approval letter which seems silly as it will be fully disclosed on the HUD. Can you share what you think about that? Thanks!

Bryant - Thanks. By the way, you're "Dear Bank of America" blog-post awhile back was an amazing piece of art! Julia

Phil Hanner said:

Others have properly addressed the work around. I will address commission cuts. I have been threatened with that before. Your commission is an agreement between you and the seller. If the deal is not netting them enough they can say NO to the deal. Make sure your commission is clearly stated in the listing agreement you fax in. One LM with a large servicing company that I met outside of work told me they get to keep a cut of whatever you give up, so don't do it. Be nice and ask if there is something you left out of the package? Was there something you did a bad job on? If you cut corners and did a bad job cut your fee. If your MLS costs have gone down, cut your fee. If your gas prices have been lowered - cut your fee. If you worked hard on this and did a good job - JUST SAY NO.

Loss mitigators are cogs in a machine. They have to ask.

I was doing a deal on a triplex and knew one BPO came in at 90K and another at 95K. The offer was 130K and the property needed two roofs and many repairs. The buyer had 1031 money he had to use. After the net and all had been approved, the LM came back and asked me to cut the commissions. I told the LM that the buyers agent and I were bound by contracts and neither of us were going to renegotiate with the buyer and the seller because we had performed. I told him this was an awesome deal for the lender and that it was foolish to give up $50K in extra cash for the client (35 in price and a minimum of 15 in holding and 4C costs) in exchange for 1% of the purchase price. I had fulfilled my obligation to my client. It was Tuesday and I told him thanks for his time and I would give him until Friday to change his mind. He called back in 48 hours and approved the deal.

Permalink Reply by Bryant Tutas on June 13, 2010 at 10:13am

Thanks Julie. That letter worked miracles for me and my seller.

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