Replies to This Discussion

Permalink Reply by David Cash on February 23, 2011 at 2:41pm

Hey Emily,

 

I was the seller in my short sale.  Realtor fees were paid out of my sale.  NFCU just stipulated that it can't be more than 6%.  They received the prelim HUD before the sale was approved and it included all the fees (to include realor fees).

 

Dave

Permalink Reply by Emily Crowe on February 23, 2011 at 2:44pm

Thanks Dave.  Did you have to bring extra money to the table to cover or did if affect the value of your promissary note at all?

Permalink Reply by David Cash on February 23, 2011 at 2:51pm

The prelim HUD had us owing $63,000...the offer we got from NFCU was to bring $20,000 in cash at closing or get a 15 year promissary note for $40,000 with zero interest.  We did the 20K.  In the pre-HUD it also included 4,000 to the buyers for closing costs...in the end after all the costs/fees were taken out, NFCU did get much.

Permalink Reply by Adam Woodhall on February 24, 2011 at 8:40am

NFCU is not being entirely truthful. First, I advise against your sellers ever contacting them directly again regarding the short sale - please call on their behalf. You as the agent can and will know better, seller will not. We all know commissions cannot be paid 'out of pocket', i.e. outside of closing, as that is a clear RESPA violation. NFCU is a government entity and knows this as well. They are just playing hardball. If you bring a good offer that meets their BPO, they CAN, and WILL, do it via short sale. Find out what the BPO is, what their net needs to be, whatever it takes,  First loss, best loss. I have a fully executed HUD1 with commissions paid as evidence. My loan was a portfolio loan as well (assuming this is what you mean...verify no Fannie/Freddie/ other investor is involved). If there is another investor, this can be used to your advantage with leverage.

Permalink Reply by Brigitte Powell on February 25, 2011 at 2:05am

Don't know what state you are in, but if Seller signs a listing agreement and says he/she will pay commission then it is so. Commission IS paid by the Seller and it DOES come out of their pocket. They owe what they owe. Navy Fed nor any other bank or servicer pays the commission. Commission comes mostly from the Seller unless buyer willing to pay.

Permalink Reply by Brigitte Powell on February 25, 2011 at 2:07am

Right.

David Cash said:

Hey Emily,

 

I was the seller in my short sale.  Realtor fees were paid out of my sale.  NFCU just stipulated that it can't be more than 6%.  They received the prelim HUD before the sale was approved and it included all the fees (to include realor fees).

 

Dave