Replies to This Discussion

Permalink Reply by Celeste ODea on October 30, 2012 at 6:50am

It is considered "additional commission."  Banks won't pay more than 6%, however, I have been able to get the Admin Fee for the buyer's agent thru since the buyer was paying for it, but definitely not the listing agent.  You still may have to negotiate it.

Permalink Reply by Jim McCormack on October 30, 2012 at 6:51am

Is this an FHA, or VA short sale, or a conventional (Fannie, Freddie, or bank owned loan) short sale?

What bank are you dealing with?

Permalink Reply by Amanda Pittman on October 30, 2012 at 7:00am

This is Freddie Mac/wells fargo. And yes it is a few hundred dollars on each side. I cant stand being controled like this. Of course we will close anyway if I cant get to an agreement but 5 months of work at 3% of $20,000.........

Permalink Reply by Jim McCormack on October 30, 2012 at 7:52am

You are not going to get any Admin fees or additional commissions on the Seller side.  Freddie Mac will only pay 6% total commission.  You also will not be able to get the buyer to pay your admin fee.  As a short sale listing agent, your commission is completely dictated by the maximum that the investor will allow.  That is why I charge 6% and give 2.5% to the buyer agent (i.e. I keep 3.5%).  If the buyer agent wants more commission then can get it from their buyer (unless the buyer is getting an FHA loan).

The buyer agent admin fee should not be a problem as long as the buyer is charged this fee on the buyer side of the HUD1.

Permalink Reply by Ben Benita on October 30, 2012 at 6:54am

FInd out who the Ivnestor is, and, contact THEM directly.

Wells mostly Services Governement backed loans and portfolio .loans.

Also, KNOW THIS, assuming those fees you mention are only a few hundred dollars:

IT MAKES NO FINANCIAL SENSE FOR ANY INVESTOR to foreclose over a few hundred dollars.

Remember - EVERYTHING on a short sale is negotiable (and some even pay 10% commissions to agents, I will be blogging about this next week)!!!!

Stay strong....escalate, speak to the Investor, close and GO HELP SOME MORE HOMEOWNERS!!!!

[email protected]

Permalink Reply by Steven Angelil on October 30, 2012 at 7:22am

Hi Amanda,

I respectfully disagree with you.  If the investor is taking a loss, in my opinion they have every right to make sure they are receiving the highest net proceeds possible.  I'm sure their thinking is why should the buyer be paying admin (junk) fees when those dollars could have gone towards the loss?  Yes, I'm biased as I haven't charged buyers or sellers any admin fees in years.  I only used to collect a processing fee when I was paying someone to help me process files.  But that is my reasoning as to why you are running into resistance from the investor.  If I were you I would just have the title company take off the fees and get the HUD to the lender so they can sign off and close before you hear about your file being service released or some other last minute deal-killer!  I hope this closes for you asap.  Good luck.

P.S.  When I wrote the above text I had no idea this was a $20k transaction.  I'm surprised they didn't offer a higher commission.  I hope you do escalate and get to keep the admin (additional commission) fee.

Permalink Reply by Jeff Payne on October 30, 2012 at 9:10am

Steven, a buyer fee has nothing to do with the seller side.  Freddie Mac is not asking for the buyer fee to be paid them, they are asking for the buyer fee to be removed.  This has nothing to do with the amount of loss that the lender is taking.  Not much different than a third party processing fee being paid for by the buyer.

I am with Ben and Bryant here..

Permalink Reply by Ben Benita on October 30, 2012 at 8:21am

and, NEVER EVER EVER FORGET:

The lower level parties most of you of you deal with are called "negotiators" for a reason!!!

Any guess what their job description is?

;-)

Permalink Reply by Amanda Pittman on October 30, 2012 at 8:52am

Unfortunatly with the closing tomorrow I do not have time to argue. They have me backed into a corner!

Permalink Reply by Bryant Tutas on October 30, 2012 at 8:58am

I have collected commission and fees before, during and after closing. I dictate my compensation. 

Permalink Reply by Jim McCormack on October 30, 2012 at 9:17am

How do you handle charging fees to the buyer when they are getting an FHA loan.  FHA will not allow the buyer to pay any commission as part of their closing costs.

Permalink Reply by Amanda Pittman on October 30, 2012 at 9:19am

I've never had a problem collecting an admin fee from a buyer even with an FHA loan. Its not really commission.

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