my buyer is being charged a shortsale processing fee that was not disclosed by the sellers agent

Hello to all

My buyer is being charged almost $3k in shortsale processing fees that the sellers bank did not approve.  The sellers attorney has not given a breakdown of the fees or proof that the fees were not approved.  The MLS did not disclose any fees and there is nothing in the executed contract. I spoke with my buyer and he agreed in good faith to contribute $1,000 towards the shortsale fee but that wasn't enough for the  the sellers attorney who called me and told me he didn't have to disclose anything.  What recourse do we have?

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Permalink Reply by Ray Sande on August 5, 2015 at 4:24pm

I'd back out of the deal.  Is it really worth the seller to lose this deal over 2k (after the buyer good faith).  

Permalink Reply by Wayne Brooks on August 6, 2015 at 4:09pm
Exactly, show up prepared to close as scheduled. The seller's attorney may not have to disclose his fee, but that doesn't mean the buyer has to pay it. If the attorney didn't have an agreement to get paid by his client, too bad. Do you not have the approval letter, which lists the fees being paid by the bank? I'd be letting the attorney know there will be a bar complaint if he tries to kill the sale. Is this attorney handling the actual closing? If so, get another title co., the approval letter has been issued, close without him. You'll have to get the seller on board.some attorneys like to play this last minute sand bag game, and assume the buyer and the agents will kick in to make it happen. BS.
Permalink Reply by Smitty on August 27, 2015 at 2:50am

The seller's attorney ABSOLUTELY has to disclose a fee.  I would look up lawyer fees and disclosure in your state and slap them back with it.  You have no obligation to even pay the $1000.  I would call the BAR association in your state and even ask about this.  You can't just randomly charge someone a fee.  You have to contract for that fee.  Now maybe he is disguising this under the guise of tile fees, or something else, but again even title companies have to give you a breakdown of fees on the HUD and what they are and they should be usual and customary.

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