The lender chose to out source the negotiations for the short sale process (IBM LBPS). The National Resource Group is telling me that I need to reduce the commission of 6% to 5% and give them 1% and to put it in the HUD settlement that way too.

My broker said that if the seller/borrower did not hire a negotiator and I am processing the contract through, there is no way we can reduce the commission to pay the fee of the lender's out source company. We sent them a copy of the 54 page MARS Regulation.

After two weeks of IBM LBPS council revewing. And with no answer back from them, The negotiator from NRG called me and said that FANNIE MAE is the one that makes the decision and they said that they can reduce my commission to 5% and that it is the new commission given on these short sale processing, so he or his company gets the 1% fee.

He said he had it in writing. I told him to EMAIL me exactly what he said and to copy my broker on it.

Is this legal or not?