We most recently concluded the Short Sale from HELL ending with the Chase Short Sale mitigator, Erich Broemser and his supervisor Melissa Gaertner attempting to reduce our listing commission to 5% in the most underhanded fashion.

I will save you from all of the delays, problems and broken promises by Erich.  I will simply point out the major highlights so that you are informed so as to be aware of their tactics.

HOA problem: The Buyer, Seller and Chase had all agreed on an acceptable Purchase Price of $200k. The HOA was owed approximately $7500.00.  Erich required that we offer the HOA only $3000.00, take it or leave it.  Chase had already received a Final Judgment and had stopped the auction 3 days prior to work this transaction.  The HOA’s attorney advised us that normally they would agree.  However, Chase failed to name the HOA as a defendant in the foreclosure action.  Therefore, the HOA was statutorily entitled to every dime and they wanted it all refusing to negotiate.  They would get paid in full, foreclosure or not.  Erich had a problem with this fact and continually suggested that his investor, Fannie Mae (“FNMA”) would not authorize such a HOA payment.  I explained that this HOA problem was unique and caused by Chase’s attorney failing to properly enjoin the HOA.  Ultimately, I went directly to FNMA and explained this issue and that this HOA’s full payment was a must. FNMA agreed and authorized the payment. 

Now here’s the kicker. Closing is scheduled for Friday at 9:30am and Erich is fully aware of this fact.  We get everything approved (trust me it was difficult, I had to keep calling FNMA to get them to assist) on Thursday at 3pm. Erich has had numerous HUD-1s dating back to September including the most recently provided one from the week previous.  All HUD-1s reflected our contracted 6% professional fee.  Erich advises me that everything looks good except for some “small minor title company fees” that FNMA will not authorize.  At approximately 4:10pm Erich called the title company and instructs them to reduce our commission from 6% to 5%.  I am immediately notified and contact Erich who explains that because there isn’t a cooperating broker “his investor” FNMA will not pay 6%.  Furthermore, he advised me that he had enough of this file and he was through talking to me. He advised me that I could call and complain to anyone I would like.  He provided his supervisor’s name and direct contact, Melissa Gaertner. He became increasingly belligerent and quickly put the phone down without hanging up. He was totally non-responsive. Great professionalism!

I was able to connect with Melissa shortly thereafter.  She too was equally belligerent and arrogant.  She took the firm position that this 5% commission is being done pursuant to FNMA’s serving guidelines.  Unfortunately, for her I had already emailed Erich and herself the actual FNMA servicing guideline, Section 504.02 which specifically prohibits this conduct. I asked her to provide written documentation that supports her position and that is now contrary to this FNMA guideline.  She admitted she could not provide such information and she was acting on instruction from senior management at Chase.  Reluctantly, she eventually agreed to amend the commission back to the 6%.  However, in the meantime I had also reported their attempted tactic immediately to FNMA who promised to contact Erich and make certain we were appropriately compensated. 

The transaction closed on Friday as planned after much unnecessary stress.  The closing attorney’s closer advised me that Erich admitted to her that he had been previously provided incorrect information and that the 6% should have been authorized.  Neither Erich or Melissa had the professional courtesy to call me and apologize for their actions.

My biggest beef is their attitude and their attempt to stuff this down my throat at the 11^th hour without warning or speaking with me; especially considering we just spoke.  What sneaks and what a nerve, amazing.

Let’s me safe out there and be alert for these games. 

[email protected]

PH: 414-977-6911

[email protected]

PH: 414-977-0710

No Negotiation of Preforeclosure Sales Commission

Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers

Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a

reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.