Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on April 4, 2012 at 6:46am

Tell them to put it in writing with a wet-signature from an Officer of the Bank. 

Permalink Reply by Michael Hayley on April 4, 2012 at 6:57am

I say fight. I've found Wells as 2nd to be very tough negotiators; it seems their corporate persona is to be tough fighters/negotiators. They will seek any advantage they can find. I think like in the school yard, the Bully must be stood up to. 

I want to see what others say here. 

Permalink Reply by Samuel Hilbert on April 4, 2012 at 8:22am

I'm leaning towards fighting but he was pretty stubborn today on the phone. Before I fight though I would love to hear someone else tell me they've had success fighting it and how they went about it. At this point I've simply been told to "send them a new HUD reflecting the commission going to them or they won't submit it to the investor."

Permalink Reply by Mary Ferris on April 4, 2012 at 8:15am

I am also doing a Wells Short sale with a Wells 1st & 2nd.   I received my 2 aproval and it said 6%   They do have a agreement that

if it is a Wells 1st that they gt 10%

 

I am still wating for approval on the first TD

 

I dont think they will change it.

Permalink Reply by Samuel Hilbert on April 4, 2012 at 8:20am

Interesting...both of my files the second won't do very much until we receive the approval from the first. This is pretty typical so didn't worry me but the commission has me more frustrated as the second is already getting the 10%.

My firsts have been very easy to work with though...and full commission so you should be good on that end...I wish I had your negotiator for my second lien!

Permalink Reply by Mary Ferris on April 4, 2012 at 8:42am

The second was a home equity. Every thing done by Fax.. The gal Camie would even call me for weekly updates.

 

The first thru equator has been a nightmare Had to have the whole offer redone because buyers agent  did not write out the word Trail on the address.  They also would not accept the buyers proof of funds cause it was in a trust. He was paying cash.  Why do they care, as long as he had the money.

Permalink Reply by Samuel Hilbert on April 4, 2012 at 8:50am

Mine is also home equity by fax...good to hear yours was 6% though...gives me some hope. I hope a couple other people chime in with similar experiences.

I've had more problem with lenders verifying sources for proof of funds from buyers than about anything else...and it really does frustrate my buyers. I understand their frustration too as I often find it ridiculous.

Permalink Reply by Jim Hale on April 4, 2012 at 8:48am

You can't blame them for asking.

But you can blame yourself, if you agree to their demand.

The second can kill the deal.   But if they do and foreclosure ensures, they will get nothing. Reminding them of that fact is the best defense. 

Thom's advice is spot on.  I would never ask a client to accept something that was not put in writing.  Why would you?  Putting things in writing is what we do.

Permalink Reply by Beth Walsh on April 4, 2012 at 9:26am

Hi Samuel, I take it this is not a HAFA short sale? Is the 2nd a loan or equity line? I like Thom's suggestion. Have 'em put their money where their mouth is.

In the end I think agents have an excellent case for a huge class action law suit over the reduced commissions. Seems like contract interference to me, especially with the feds taking a hands off approach to the commissions. Just my 2 cents...

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on April 4, 2012 at 9:41am

I agree - the contract is between Seller and Buyer  - and - commission is between Seller and Broker.  Short Sale Lender is merely approving how much of a loss they are willing to accept.  If the Short Sale Lenders were smarter, they would simply state we are willing to accept a net of $XXX,000 rather than directing where the shortage must come from such as commission.

 

BTW, I just closed 2 transactions both with Wells HELOCs and neither reduced the commission.

Permalink Reply by Samuel Hilbert on April 4, 2012 at 9:44am

Good to hear...I'm going to be pushing back...I think they're likely getting greedy because the purchase price of the home is close to $600,000 so they see big dollars on the HUD going out and want a chunk of it.

This is a HELOC as well.

Permalink Reply by Samuel Hilbert on April 4, 2012 at 12:02pm

Just a quick update...he is submitting it without cutting commissions though he's telling me that "we likely won't get approval or at least no debt forgiveness." I said, "well I guess we'll see what happens"...and we will though based on your stories and experience I'm fairly confident. I think the problem is how big the commission looks on this size of a purchase so they are getting greedy.

Thanks for the responses...more experiences are always appreciated.

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