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. 

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Jeff, I am not advertising, simply stating a fact, but I get your drift :)

how much do you charge?

No problem, just wanted to try to keep it on topic :) appreciate your input

I think a healthy discussion about commission as it relates to short sales is probably warranted. 

 

I more strongly believe we need to be very careful about any discussion of commissions in this audience as it could be construed as price-fixing and/or anti-trust.

 

At the end of the day, commissions are always a negotiable item, before and during every transaction no matter what type.

 

Use Caution everyone.... Anti-Trust investigations are NOT fun.

hear hear very good point Thom

Thanks Thom, you are always a voice of reason and we appreciate it.   Discussing commissions is a slippery slope.

I see alot of people who want to fight over a bank cutting their commission and then I look in MLS and see that they have listings that are advertised with less commission than the bank is paying AFTER they cut it.  Seems a bit hypocritical in some ways.

Thanks again Thom for being a great contributor on this site!

Let's steer this back to the original topic that Julie posted.

How can we stop the lenders from automatically cutting the commission?

The first thing I would do is check to see if it is a Fannie or Freddie loan or see if the short sale program even allows for the lender to reduce commission.

What other suggestions do you have? Please keep it on topic

Jeff

 

I know this may sound like a dumb question, but how do you check to see if a seller's loan is a Fannie or Freddie loan?  Also you said " see if the short sale program even allows for the lender to reduce commission."  Who's short sale program do I check. The lender (GMAC) ?   And how do I check the short sale program? Where do I find this information. thanks Julie

If anyone is performing Short Sale Negotiation (SSN) on Real Estate located within the State of California - here's an excerpt from the California Association of Realtors Legal website regarding Short Sale Negotiators:

 

Licensing

Make sure a SSN is properly licensed.   A SSN must be a licensed real estate broker or a licensed salesperson who is working under a broker.  If the SSN works from outside the state of California, DRE enforcement officers have advised that the out of state SSN must still hold a California license if they wish to assist a California client.

An attorney is exempt from the real estate license requirement if certain conditions are met, such as the attorney is not using or attempting to use the exemption for the purpose of evading the licensing laws (Cal. Bus. & Prof. Code § 10133(a)(3)), and the attorney is not actively and principally engaged in the business of negotiating mortgage loans (Cal. Bus. & Prof. Code § 10133.1(a)(5)).

An indication that a SSN is not properly licensed is when the short sale negotiation entity is an LLC.  In California, an LLC cannot get a real estate broker’s license and therefore, should not be doing short sale negotiation. It is illegal to pay an unlicensed individual or entity for doing licensed work.  Even if it is technically your client who pays the SSN, as the person who effectively arranged the transaction, you may expose yourself to both criminal and civil liability, and you could have your license revoked or suspended by the DRE.

Thom, can I copy this to a new post?

Joseph come come now, First; You trying to hard, obviously you don't have anything better to do with your time to write such long response, Second home owners in hardship don't have the money to pay an attorney for something a highly educated trained Realtor can handle, Third; We agent definitely will not pay you for the work we can handle our commission is cut as it is, Four; In all may transactions I found that attorneys only complicate things and add another party that we have to go back and forth with, Fifth: We Realtor have the best attorneys money can buy working for us thru our National and State realtor associations I hope that all Realtor are aware of that and utilitizing on it, Lastly I have at least 150 hours of training in 2011 on the matter, this year I plan on taking the same or more and lets not forget to thank Shortsalesuperstar website and the great Woman and Men behind it Wendy Rulnick, Bryant Tatus and Jeff Payne for providing this fantastic website full of data base on short sales free of charge.

P.S. i will not response to this forum anymore it has taking to much of my time already, Thank you everyone.

Jason, please see his post on 3rd party negotiators.  He charges the buyer.

Keep in mind that I agree with you 100% in that we can handle these ourselves and there is not always a need for a third party. 

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