Short sale negotiator and Atty- last minute, buyer pays from 3% contribution Part 2

This is a contunuation of my broker's post Aug 22.  I represent the buyers. We are 2 days from closing and 3rd party negotiator presented the following on their company letter head trying to get paid. They never disclosed how they were getting paid during our negotications nor was it noted in the MLS.  

 (“S & S”) in cooperation with Christian, will negotiate the short sale for the above referenced property. As part of its services S & S will:
-Negotiate the short sale with all note holders.
-Negotiate with Associations as may be needed.
-Coordinate document gathering.
-Coordinate efforts with sellers, buyers, realtors, attorneys and mortgage representatives.
-Work on extensions if needed and desired by all parties.
-Keep all parties informed of the process throughout and/or be available for updates as
needed.
As compensation for its services, S & S, Inc. will charge the releasing note holder a fee of up to Three Percent (3%) of the sales price (“Negotiation Compensation”). S & S, Inc.’s negotiation compensation will be collected from the releasing note holder at the time of closing and not from the parties to the transaction or their agents. The parties acknowledge and agree that S & S’s compensation may appear on the buyer's side of the settlement statement, the seller's side of the settlement statement, or both. If any part of the negotiation charge is contained on the seller’s side of the settlement statement, the seller understands and agrees that the charge was negotiated with the note holder specifically for short sale negotiation purposes, and the seller would not otherwise be entitled to receive those funds as part of the closing or outside of closing. If any part of the negotiation charge is contained on the buyer’s side of the settlement statement, a credit will be given in an amount greater than or equal to the amount being charged. The resulting net charge to the buyer will be $0.00. The buyer understands and agrees that the charge was negotiated with the note holder specifically for short sale negotiation purposes, and the buyer would not otherwise be entitled to receive those funds as part of the closing or outside of closing.
Seller:___________________________ Buyer:_________________________________
Seller:___________________________ Buyer:_________________________________
Listing Agent:_____________________ Selling Agent:___________________________

 

The buyer's do not want to sign it.  Can the negoticator hold up closing?  Need help.  BTW the buyers are financing.

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My first reaction is I wouldn't sign it!

However! Not paying could cost you the house!

When was your agent aware there was a third party negotiator?

I say there is at least one real estate license at risk and possibly four.

Once you sign it you've agreed to it.

Bill

Here is another example, in my opinion, of why a 3rd party negotiator is USELESS and PROBLEMATIC!  Just because the real estate agent is too lazy to deal with the bank, now the agent and buyers, unfortunately,are going to pay for it,  I would ignore the 3rd party negotiator.  I wouldn't pay them a single dime- Instead I would recommend that our 3PN "look for a new occupation"....LOL.  I wouldn't have my buyers' sign anything.

 

Now whats going to happen is that the 3PN is going to be really mad. Eliminate their bank authorization IMMEDIATELY so they cannot contact any of the lenders involved.  I would also follow up with a legal letter stating that if they contact anyone involved in the transaction or mingle in any way, there will be legal action commenced against them.  If they try and attempt to cause you problems, I would contact your states real estate board and any other neccessary agency and report this guy and his company.  Third Party Company's aren't too popular when it comes to state governments and their laws when it comes to protecting the consumer from certain "unscrupulous" situations.

 

Roger C. Fountain

Plano, Texas  (Dallas area)

 

That's a bold statment, Roger

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