Can any share with me the documentation they are using for upfront fees for short sale transactions? Fee range?
I appreciate your help,
Kimberly Sherrod
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Well there you have it. Now we are on the same page :)
Also remember not all short sales are facing foreclosure. In fact most of mine aren't. Short sale and foreclosure rescue are NOT synonymous.
I agree, but we all know too well how others may misunderstand what we're saying and then the "step in it" big time. I always teach to tread on the side of caution......
Bryant Tutas said:
Well there you have it. Now we are on the same page :)
Also remember not all short sales are facing foreclosure. In fact most of mine aren't. Short sale and foreclosure rescue are NOT synonymous.
Banks will pay us a separate fee for processing a short sale included it in the hud1 and see but in our state of Arizona we have to have Mortgage Loan Originator license to charge that fee and natually you don't get paid anything if you don't accomplish the short sale, its also law in the state of Arizona that will not allow anyone to charge any upfront fee not for short sale or loan mod .
Nate. You said: "We take ALL our listings on the prospect of getting paid when we sell."
This is not a true statement. There are many brokers that charge for their services upfront and these charges are not conditioned on the transaction closing. And there are brokers that charge a combination of fee for service and commission at time of closing. How much we get paid and how we get paid is 100% between the broker and their client/customer.
Nate Gerard said:There are two kinds of fees up for discussion:
One is a fee to initiate a short sale for a seller with a hardship. I see the intent behind these fees. An agent works diligently for 6 months to list and negotiate a sale only to have the seller decide not to sell (for one of the myriad of reasons sellers make this decision) leaving the agent out of luck. Some can rationalize this type of fee. To me it seems unethical. We take ALL our listings on the prospect of getting paid when we sell. Why should this be any different? If you don't like the reduced likelihood of closing don't take short sales, or pre-qualify the sellers better.
The second fee is a Broker closing fee that the bank won't pay. I charge this to all of my clients (traditional & short) with some exceptions. If the seller has no job and they are still in the process of getting their life back on track I pay it out of my commission. One of the reasons I began doing short sales is to help people and that seems a perfect opportunity. Of course, if the sellers have good jobs yet still can't keep the house (like in divorce) I charge the fee. It goes to my Broker anyway, not me.
MARS is simply regulation created to force unethical people to do what ethical ones already know. I don't like being told to do it a specific way so I'm happy they suspended enforcement for Realtors, however good agents (like the ones we have as members of this site) should already abide by the Golden Rule anyway.
States may vary, they AZ DRE has come out and said we in az are still NOT allowed to charge upfront fees
Yes Kayte she already said it does not change, still prohibited. I will find it and email it to you, but they ruling from her office came out friday afternoon.
I appreciate everyone's opinion on this matter but I am for charging a small upfront fee. We are not running a NON-Profit service. Almost all of my short sales are with people who I did not represent when they purchased the home so I did not get any compensation for that transaction. Nor did I originate the loan that got them in trouble in the first place. If CPAs, attorneys and physicians can charge for their services prior to the completion of their hired task, why can't I. Do we as brokers have less worth? I am not talking about $1000's but 100's. I have closed over 100 short sales, I know more about short sales then most lender, attorneys or credit counselors. So why shouldn't I get paid a small up front fee for engaging in my services. If they don't want to pay they can find a less experienced Realtor, no one is forcing them to use me. Unless you are running a non-profit or are independently wealthy and you are GOOD at short sales, I say charge something. My average sale in Detroit is $100,000 and I need that additional $400-$700 depending on how many loans, to keep my staff, systems and marketing going. I think we can help people and still get paid for it. BTW, my clients always feel that is was worth paying me to do it right then the post closing costs of a sloppy job.
Respectfully
I appreciate everyone's opinion on this matter but I am for charging a small upfront fee. We are not running a NON-Profit service. Almost all of my short sales are with people who I did not represent when they purchased the home so I did not get any compensation for that transaction. Nor did I originate the loan that got them in trouble in the first place. If CPAs, attorneys and physicians can charge for their services prior to the completion of their hired task, why can't I. Do we as brokers have less worth? I am not talking about $1000's but 100's. I have closed over 100 short sales, I know more about short sales then most lender, attorneys or credit counselors. So why shouldn't I get paid a small up front fee for engaging in my services. If they don't want to pay they can find a less experienced Realtor, no one is forcing them to use me. Unless you are running a non-profit or are independently wealthy and you are GOOD at short sales, I say charge something. My average sale in Detroit is $100,000 and I need that additional $400-$700 depending on how many loans, to keep my staff, systems and marketing going. I think we can help people and still get paid for it. BTW, my clients always feel that is was worth paying me to do it right then the post closing costs of a sloppy job.
Respectfully
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