Tags:
Not that this helps, but you should have known that going in. The 1st will never let the seller contribute to the 2nd.
Either ask the buyer to pay it, or the agents split it or you pay it yourself. $2,000 is a minor inconveniance to get the deal done. Pay the 2k and move on to the next deal.
Andrew. That's not true at all. I have had sellers contribute to the 2nd on many occasions. It has never been an issue. As for contributing $2,000 out of the commission and moving on to the next deal that is all well and good assuming there is $2,000 in the commission. I work on short sales all the time that are less than $60,000. Hard to contribute $2,000 towards a closing when the listing side commission is only $1,800.
The solution to Becky issue is for the seller to pay the $2,00o as they have already agreed to do. Whoever from Chase said the seller couldn't pay is wrong. This is nothing more than a communication problem.
Andrew said:Not that this helps, but you should have known that going in. The 1st will never let the seller contribute to the 2nd.
Either ask the buyer to pay it, or the agents split it or you pay it yourself. $2,000 is a minor inconveniance to get the deal done. Pay the 2k and move on to the next deal.
Thanks for another great response Bryant! Your right, Sellers are allowed to contribute to the 2nd. In one of my recent transactions the seller was allowed to bring in money towards the 2nds payoff (dealing w/ 2 different lenders too). I'm always surprised when agents are so ready to give away their commission or to suggest to another agent to do so. Our commission should not be part of the equation. I feel that lenders are just expecting us to cave and contribute because so many agents do exactly that and don't fight for what they're worth. We all work hard for our commissions and we should not be willing to walk away from $2,000 or any amount of money that we've contractually earned.
Bryant Tutas said:Andrew. That's not true at all. I have had sellers contribute to the 2nd on many occasions. It has never been an issue. As for contributing $2,000 out of the commission and moving on to the next deal that is all well and good assuming there is $2,000 in the commission. I work on short sales all the time that are less than $60,000. Hard to contribute $2,000 towards a closing when the listing side commission is only $1,800.
The solution to Becky issue is for the seller to pay the $2,00o as they have already agreed to do. Whoever from Chase said the seller couldn't pay is wrong. This is nothing more than a communication problem.
Andrew said:Not that this helps, but you should have known that going in. The 1st will never let the seller contribute to the 2nd.
Either ask the buyer to pay it, or the agents split it or you pay it yourself. $2,000 is a minor inconveniance to get the deal done. Pay the 2k and move on to the next deal.
I'm always open to learning how to do short sales "better". Was your seller able to bring in all the money and put it on the HUD for the 2nd? I just haven't seen the case where that's happened, but I do know that banks are different, and every situation is different and I don't know it all.
As far as commissions go, I usually have the buyer bring in the money for the 2nd if possible. My only point is I'm not going to lose a deal and put the home back on the market and start all over again, over $2,000. But my market is different and I guess if as Bryant said he was doing and selling homes for 60K, then I would feel different. But in my 600-900K market, if I can kick in 2k and make my problems go away, I'll do it all day long. It's about volume and sanity.
Andrew
Sherrilee Denton said:Thanks for another great response Bryant! Your right, Sellers are allowed to contribute to the 2nd. In one of my recent transactions the seller was allowed to bring in money towards the 2nds payoff (dealing w/ 2 different lenders too). I'm always surprised when agents are so ready to give away their commission or to suggest to another agent to do so. Our commission should not be part of the equation. I feel that lenders are just expecting us to cave and contribute because so many agents do exactly that and don't fight for what they're worth. We all work hard for our commissions and we should not be willing to walk away from $2,000 or any amount of money that we've contractually earned.
Bryant Tutas said:Andrew. That's not true at all. I have had sellers contribute to the 2nd on many occasions. It has never been an issue. As for contributing $2,000 out of the commission and moving on to the next deal that is all well and good assuming there is $2,000 in the commission. I work on short sales all the time that are less than $60,000. Hard to contribute $2,000 towards a closing when the listing side commission is only $1,800.
The solution to Becky issue is for the seller to pay the $2,00o as they have already agreed to do. Whoever from Chase said the seller couldn't pay is wrong. This is nothing more than a communication problem.
Andrew said:Not that this helps, but you should have known that going in. The 1st will never let the seller contribute to the 2nd.
Either ask the buyer to pay it, or the agents split it or you pay it yourself. $2,000 is a minor inconveniance to get the deal done. Pay the 2k and move on to the next deal.
Bryant,
How is it different is the seller pays POC or if they pay "normal"? The 1st will still know they're paying and still won't allow it. (in my opinion). If it was as easy as going POC, we would do it all the time and there would be no issues with seller contributions.
What am I missing?
Andrew. We're not trying to hide it from the lender. When the lender states "the seller can't pay it" they almost always mean "from the proceeds of the sale." It's a communication issue. When this happens don't even argue with them. Just prepare a new HUD and place the payment on the seller side as POC and then submit. It will get approved.
Even when the first is an FHA they will let this go through.
Andrew said:Bryant,
How is it different is the seller pays POC or if they pay "normal"? The 1st will still know they're paying and still won't allow it. (in my opinion). If it was as easy as going POC, we would do it all the time and there would be no issues with seller contributions.
What am I missing?
Thank you all for your input. Bryant, I resent the HUD to Chase with the $2,000 on page two as POC and it was approved this morning!! Because of RESPA guidelines, the title company cannot transfer the funds to the 2nd lien holder. So the seller paid directly to 2nd and we are closing Monday. Thanks again.
© 2024 Created by Short Sale Superstars LLC. Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.