How to stop short sale lenders from automatically cutting our commission
Nearly 9 out of 10 of my short sales, the lender cuts the commission from 6% to 5%. I am sick of this. They know they have us by the short hairs and do it automatically. Now I have GMAC being represented by IMPACT that wants to take 1% of my 6% commission. They want me to sign a new fee agreement and commission disbursement form. What can I do and how can this be stopped.
Replies to This Discussion
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Permalink Reply by Cameron Novak on
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Sometimes you just need to say "NO" Julie. Whoever blinks first... loses... and 90% of the time... it's the agent.
The bank is not a party to the listing agreement and you shouldn't give them any opportunity to dictate the terms of the agreement.
My attorney calls it "Tortious Interference".Sometimes when you negotiate, you have to draw the line.
Don't you want a little taste of the glory? See what it tastes like?
See you at the top... or from the top,
Corona, California
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Permalink Reply by Julie Wilkinson on
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Cameron, please give me the details of your argrument with them about Tortious Interference. I would like to try and use this. Thanks for the help.
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Permalink Reply by Richard Zaretsky on
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I wrote about this and how it was defeated in court under specific facts. You should give the article (and case) a read as it may apply to you especially if the new company is trying to muscle in and they were "authorized" by the lender. SHORT SALE LENDER CANNOT REDUCE COMMISSION TO BROKER.
I am also a firm believer like Cameron in NOgotiation.
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Permalink Reply by Julie Wilkinson on
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Richard can you give us the verbage you used in how it ws defeated in court and tell us where we can look up the court case? I need to go the next step as they are still refusing to cooperate. Thanks Julie
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Permalink Reply by Elise Perry on
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Yes this is very frustrating, but I was able to find out that if the backer is Freddie or Fannie they can't cut your commission. Visit by face book business page @ eperrysellshomes and read the article I posted where NAR has already negotiated that they can't renegotiate our commission.
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Permalink Reply by The Negotiator on
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I always ask for seller concessions even though a buyer does not ask for them. 50/50 I get at least 3% that I then use for cash at closing, negotiating fee's, etc etc. You also could use that money to have the buyer pay the lost 1% commission.
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Permalink Reply by Phil Hanner on
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I am doing one with Prosperity Bank. They are offering $375 commission per side. It is a low dollar vacant land deal but they blew a $40K land deal over $250. Gotta hang tough and demand compensation.
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are you saying that a deal didn't close because you wouldn't take a lower commission?
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Permalink Reply by Julie Wilkinson on
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PLEASE LISTEN UP ONE AND ALL- I was told, by a very well know short sale/foreclosure attorney that under no circumstances in a double ending deal should we be telling a short sale bank or seller that our broker is representing the buyer. THIS IS CONSIDERED FRAUD. It is punishable by imprisonment. You and your broker are representing both parties not one representing the seller and the broker representing the buyer. Please do not do this as you could seriously wind up in legal trouble. CONSIDERED THAT YOU HAVE BEEN WARNED.
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Permalink Reply by Jeff Payne on
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Julie, your broker is representing the seller and depending on the agency relationship with buyer, the broker could be representing the buyer too. Nothing at all illegal about your broker representing one of the parties.
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Permalink Reply by Jason Yacoub on
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Hear Hear
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agreed Jeff
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