I found out yesterday at a local Title Company..that Agents who are providing Short Sale Services...instead of "charging a fee" are writing a BONUS in the listing agreement...

what are your thoughts?   I like it!!!!

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Good luck getting it past the investor!
Interesting, where are they putting it on the HUD? which line?  Do they call it BONUS?  Wouldn't the fee the agents are charging be their commission? 
I'm not too sure the banks will fall for that...is it working for someone you know?

I think it's unethical.

 

Thom Colby

Broker / Negotiator

Newport Beach CA

I understand that if not shown as Commission on the HUD-1, it would constitute a RESPA violation. Additionally, as stated by others, investor will not likely allow. If this did happen, there might have been a private investor involved. I could be wrong. I often am.
I don't get this. Realtors are paid a commission.
I would be really concerned about whether this complies with the MARS (Mortgage Assistance Relief Services) rules imposed by the FTC.  And I think the answer is:  no.  Before doing this I would strongly urge you 1) review the MARS rules, 2) talk with your broker and 3) consult with your firm's attorney.
Gerri is right about MARS. This will land you in hot water. Just covered this with a legal panel presentation. A bonus is still a fee and all rules and requirements apply.  
The banks are on to this already and they go over the HUD to make sure there's no unnecessary fees that they will have to pay out. They will tell you to take it off and that's that.
I think it is unethical and I had it happen to one of my agents as Seller Non Allowables. We are fighting this
More likely than not the lender do not approve of these junk fees. I tried it before and the bank requested that it be removed from the Hud-1 as a condition before approving the short sale. It would be interesting to see how one can get this approved as I haven't seen it 'successfully' get through.

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