This one comes up on almost every short sale I've had. The lender kicks back the fee for the closing protection letter. I get the feeling that since they have no idea what it is, they assume it's a junk fee.

Frankly, given that the name sounds like something Tony Soprano would charge you, "that's a nice closing you've got there, it'd be a shame is something was to you know, happen to it."

Closing Protection Letters are mandated by the state of Illinois, and the IDFPR went so far as to issue a statement regarding what they are, and what was a fair charge (or actually, what fees would not be considered unfair). See the attached document, and send it to your negotiators, hope it helps.

Jim Schneider, Managing Broker

Clear Point Realty, Inc.

630 981-7300

ClosingProtectionLetterFeeStatement.pdf