Comment

Comment by Bryant Tutas on October 6, 2010 at 11:25pm

Forth. I have no clue why an Attorney would feel this is a RESPA violation. In my opinion they are flat out wrong. A short sale contract IS a contract and the buyer should place an escrow deposit at time of contract. This has ZERO to do with RESPA. Of course I am not an attorney nor can I give legal advice.

RESPA is all about settlement charges it have nothing to do with contracts.

Comment by Forth Hoyt on October 6, 2010 at 7:00pm

I am sure this question has come up before, but I have been unable to find a discussion about it. Here go's... Many short sale agents in our area have addendum's attached to the MLS that they require the buyer to sign. The addendums state that the buyer is to deposit $ 1000 in escrow upon the sellers execution of the offer. The funds will be held non refundable for 90 days, if short sale approval is not received within 90 days, the deposit becomes refundable.
This practice has been reviewed by the legal dept of several brokerages in the area and some insists this is a Respa vioation, while others say that it is not.
I am just looking for others opinions....
Thanks

Comment by Steven Jackson on April 19, 2010 at 11:59am

Sorry guys...forgot to post my earlier question as a new discussion...it doesn't belong here :-(

Comment by Steven Jackson on April 19, 2010 at 10:10am

Sellers agent is charging the BUYER a 1% fee to negotiate the short sael...heres the language: "Processor is negotiating a short sale, or discounted mortgage payoff, on behalf of the Seller and
Buyer of the Property. Processor, Seller, and Buyer agree and acknowledge that this sale is to be
conducted by including a Buyer Discount Fee of 1%(one percent) of the sale price but no less than a
$2,500.00 minimum, to be paid to Processor ("Buyer Discount Fee"). The Buyer Discount Fee shall be paid by the Buyer to the Processor as an additional settlement charge to be included on the HUD-1 Settlement Statement and will be paid at the time of closing." and the sellers agent won't even present the offer to the seller unless the buyer agrees to sign this addendum...1) is this legal and 2) are any of you doing this and 3) has it been done to any of your buyers?

Thanks

Comment by Victoria Frieberg on March 25, 2010 at 9:21am

I asked specifically what happens when new HAFA short sale rules will require an upfront bpo to help set the listing price. The answer "let the bank hire an appraisor"

Comment by Victoria Frieberg on March 25, 2010 at 9:19am

Nope, We were told very specifically that we are in a state that has a split personality when it comes to bpo/cmas. Broker Price Opinions are not to be performed as a second evaluation of a current brokers listing, nor are they to be performed for any client who may not potentially become your listing client. period. Apparently some states have already outlawed them. Our State Assoc. is now at the beginning of working with the Appraisors Institute to come up with an agreeable definition of what Realtors will be allowed to do, by Statute..in the meantime, I will not be doing anymore, as most of the people in our 100+ person meeting...

Comment by Kent Dills on March 25, 2010 at 9:05am

Victoria, respectfully I think you've understood things incorrectly. BPOs are Broker Price Opinions (done by real estate agents) and appraisals are appraisals and done by Appraisers. If what is meant is that Listing Agents have a conflict of interest and shouldn't be doing the BPO on their own listing - that is another matter - and probably correct.
Or maybe I just read this wrong and totally took this out of context (been known to do that a time or two). ;-)

Comment by Victoria Frieberg on March 25, 2010 at 8:56am

BPOS IN MN..Just returned from a meeting with our state association and commerce department. As realtors, many of us have been doing bpos prior to listings, or as back ups for the primary bpo..etc etc. ILLEGAL! now they tell us. Apparently no enforcement has been done, but they warned of 'increasing' oversight as realtors are doing an appraisors work. If the CMA/BPO is not done in the anticipation of listing the property for the client, it is not allowed and can be prosecuted. Interestingly, the new HAFA requires a bpo at onset. When questioned, the Association says that banks may order bpos or cmas from an appraisor, they will just pay more, and we are to say no.

Comment by Amy Cole on March 18, 2010 at 10:20am

Hello, I noticed on a previous page discussion about FNMA loans in regards to buyers contributing in 2nd lender payoffs. Cathy McAllister had mentioned that she was expecting a letter shortly about these issues and regs. But I didn't see anything after that. Any info is greatly appreciated as I'm trying to find out if there is any way that the buyer on a SS can contribute funds to the 2nd in the HUD when using FHA Loan to purchase a primary lender WellsFargo /FannieMae. I'm desperate for clarification. I can't seem to 'find' this in FHA non-allowables list and don't know what to do..WF is not willing to do this research ahead of time. they just say= not sure -try it... -- well, ok then I lose my buyer and lots of time if it doesn't work 6 weeks later... I'm kinda 'stuck' - any experiences ??

Comment by Katerina Gasset on March 18, 2010 at 4:37am

Karen- Stephanie is correct. Don't even touch this listing unless both spouses are responsive and cooperative.

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