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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Permalink Reply by Joseph Alfe on January 26, 2012 at 4:49pm

you are right about Core logic, their estimates are actually higher, near 30%. Campbell Surveys are well respected.

Permalink Reply by Jeff Payne on January 27, 2012 at 2:39am
I looked but could not find the report. Pleased post it here. It should lead to a good discussion
Permalink Reply by Joseph Alfe on January 27, 2012 at 4:58am

Jeff, the full report costs $12,000, so that's a non starter.  I had an updated excerpt, but I cannot find it.  I will continue looking but for now, this USA Today article references the original survey:

http://www.usatoday.com/money/economy/housing/2009-08-04-short-sale...

Permalink Reply by Jeff Payne on January 27, 2012 at 5:40am

That is a good article for sure.  I would be curious to see how equator has changed alot of the delays and low percentage of offers that dont close, particularly with Bank of America.  Alot has changed since that article was written, I wonder how the percentages have changed.  Interesting to see Dave Sunlin quoted saying 1/2 of all short sales didn't close at BofA, especially when his department was responsible for short sales, of course I am sure that he would deflect any criticism back to us and never think it was his problem :)

Permalink Reply by Joseph Alfe on January 28, 2012 at 8:08am

LOL  Dave told Angela and I at a symposium that probably 70% of their pipleline would never close: Why? Sure much of it is BOA inefficiency (although they have made great improvements) but also a great portion is bad offers and agents who clog up the system with poor submissions.

Permalink Reply by Jeff Payne on January 31, 2012 at 7:05am

Agreed 100%, bad offers and poor submission for sure.  I am always amazed at agents who want the seller to accept their buyers silly low ball offer that has ZERO chance of being accepted.  Good, clean offers and good clean submission every time.  I know what I would do if I worked for the bank and got offers that were stupid or packages that made me work too hard :)

Permalink Reply by Julissa Jumper on March 20, 2012 at 5:18pm
Permalink Reply by Kevin - Greenville, SC on January 26, 2012 at 6:30pm

I'm with you Jeff.  Can someone point to some court cases where someone was actually found guilty of Short Sale Fruad?  Yes, I'm aware of the ONE in CT.

I'm more iclined to believe this - 

Exposing Fallacies in the CoreLogic Suspicious Short Sale Report

http://www.theshortsaleguide.com/profiles/blogs/must-read-article-e...

Permalink Reply by Smitty on January 27, 2012 at 8:34am

Kevin, I dont think there are any other convictions for short sale fraud other than the CT case.  People speculate all day long, but no one has FACTS. People LOVE to throw out the term FRAUD...it's sickening.

Permalink Reply by Smitty on January 27, 2012 at 8:36am

Wow...How did I MISS this thread this week?  EXCELLENT discussion. 

 

I have to say I agree with Joseph on most points, but again, that's because I structure my business the same as his. 

 

Back to the thread at hand, what I've found is sometimes commission is cut and sometimes it's not..but it's usually based on the investor guidelines, NOT the servicer guidelines and if you call the investor if push comes to shove, they want the deal to go through just as much.

Permalink Reply by The Negotiator on January 27, 2012 at 10:46am

If every Realtor went into a short sale with a mind-set of, OK, the lender does not have to allow a short sale. A short sale is a privilege; It's not a right of the homeowner. Getting 6% commission is great most of the time, BUT, 5% is better than nothing since we are privileged enough that the lender is allowing us to complete a short sale for the homeowner. 

Yes, fight for your commission, but, don't get bent all out of shape if 5% is all there is. I'd say count your blessings because your next short sale request could come with a "hell no" attached to it.

If anyone says that they have never had their commission cut to 5% (with 2 different brokers) then they are either (A) lying to your face (B) they've completed only a hand full of short sales or (C) will only work with short sale lender they know won't cut commission (or maybe all 3.) We could all cherry pick, no problem, but, I do short sales to get the homeowner out of a bad situation and to get full satisfaction for them.

Permalink Reply by Stephanie Hart CA 310-930-2342 on January 27, 2012 at 11:23am

5% is the TOTAL norm in Los Angeles County... OC is more of a  standard 6%. Count your blessings to get 6% EVER :P ha ha

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