I am new to SSCommander.
In fact, Up until now, I hired a 3rd party negotiator to handle all of my short sales. Feeling out of control, I wanted to regain some more strength in getting my SS's closed faster.
One of the reasons I hired 3rd party negotiators is b/c I don't have time to facilitate 20+ short sales at a time.
My question is, can i charge the bank for my time (Just like the 3rd party folks do) on the HUD for the facilitation?
If so, what line item do you use and what do you call the charge?
thanks in advance for any insight!
It is mostly up to the investor, but banks throw their weight around, too. They will not pay you. They don't like paying commissions and sometimes agents have to fight for that. They always strip notary fees, title search fees, deed prep fees. Your fee is the first to go. It does not matter if you bring them a $200K buyer for a $100K property. They won't pay you a dime.
I'm not sure if this is because banks do whatever they can get away with or they want to discourage short sales by not paying anyone to get a decent sale completed. I guess it is a combination.
Uh, you have 20+ SS's going and haven't looked at a HUD-1? Then I can only imagine that your negotiator was a lawyer. Good luck.
Thanks for the reply Joe. That's what I figured. But I was wondering if you created an LLC to handle the facilitation and had an employee who worked for you, if it would be a legal way of paying for your additional time dealing with the banks, etc.
In terms of the HUD, I review everyone of them... not sure where that part came from.
My question had more to do with what a Realtor would call the negotiations if there wasn't a 3rd party involved.
I put my separate entity's name and "short sale processing fee" on the tentative HUD, and I make sure the Closing attorney abides by the HUD I have negotiated and submitted. If you don't check, and yes, this has almost happened to me AFTER all my work, the Closing attorney CAN change the HUD and cut your SS fee out without your knowledge. Have the Closing attorney send you the Final HUD before closing, they may cut your fee out because a) not all attorneys know how to process short sales, b) not all attorneys like the fact that you are being paid "extra" and don't think you've worked for it, and c) because they can. So, it's wise to CHECK THE FINAL HUD! ...ALWAYS!
Legality has nothing to do with it. Banks do not pay 3rd parties for working on short sales.
They have paid on everyone of my short sales.
..probably because it's a separate company. I have another "entity," but when they realize it's still me, they usually say no. So, you can either create an entity and hire someone to work your short sales totally separate from your brokerage, or have the buyer be responsible for the negotiation fee.
Diane, you may already have your answer. What line item and charge does your current 3rd party negotiator charge and what do they call it? How much is your 3rd party getting paid on these deals?
Diane have you tried placing these fees on the HUD to see if they will pay you? Is it legal in your state for an agent to charge these fees? BTW, I was in your area a few months ago at a class that my friend Seth Campbell taught! What a great leader your region has!
No, I haven't tried, as I am just starting to facilitate (not negotiate, as that is illegal in MD) my first ones now. I am going to look into the fees b/c they really are fees to pay for services above and beyond what is outlined on a listing agreement.
Seth Campbell is amazing. I have been fortunate enough to take a mastermind class that he ran. We are very lucky to have him!
Do you negotiate your own SS's Jeff? If so, do you charge to do it on a HUD?
We charge the buyer. Write it in to your agreement with the seller that they authorize you to seek additional compensation from the buyer. Then tell all brokers and buyer that you change an additional $x to process it because they are separate duties from traditional agency. Write it in to purchase contract, "Buyer to pay $x to ___."
No more having to worry about messing with commissions or dealing with foreclosing lender cuts. Now you're just negotiating with other brokers and buyers.
This has been our system for the last 3 years and works great!
What state are you in? I am looking to do exactly what you are doing. My broker is determining if this is something we can do in Texas.