Good morning superstars!
I received a call from my BOFA FHA short Sale negotiator. She wanted an updated HUD line 701 showing WHICH agent/person within the Broker's Company that would be getting paid the commission on my short sale transaction.
Is anyone here aware of such a HUD change effective March 1st?
Thanks!
LindaS
**********************************
like buttons
Replies
Hi Everyone It has been a very long time since I looked in here! Life happened, I almost lost my dad and so many other things began to think maybe I should hang up my RE business. But thank God he's still with us and things seem to be settling down...
Thanks much for all the wonderful responses! I think the recent... then put on hold push to reduce commissions to listing and selling agents from the same office was perhaps being spearheaded by the lenders and maybe this requirement of showing who in the office was getting the commission was a data collection process to determine how many "dual" transactions came from the same company or by the same agent etc that if reduced could "save" HUD some money. But NAR helped to shoot that one down.
I just close on a FHA short sale where they required the names of the agents on the Hud-1 which is not done in our area since all payments go to the brokerage. The compromise was our names in parenthesis...when the final Hud-1 was sent for approval by us the names were not on the final hud-1 and the closing agent approved it.
On the same FHA short sale they wanted both agents to sign the purchase contract which I refused to do since we are not party to the contract and my MLS said not to do it, as well as the company attorney. I esacalated that after blogging, tweeting about it and someone from BOA put together a task force to find out that it was against our state Real Estate law.
If you don't push back on requests from the banks we will just keep getting more stupid requests. If they would just take the time to speak with their mortgage department and attorneys before some idiot comes up with these "bright" ideas they would save everyone time and frustration. But as one of the agent told me - we just check stuff off. Well the orders come from some middle manager who knows nothing about real estate law which we all have to follow in the 50 states so they need to do some due diligence before asking for and making up rules to fit their idea on how real estate should be done.
The more you bend over for the banks to get a deal done the more you will keep on getting requests that make no common sense or go against current real estate law.
Every document needs to be perfect. Every field needs to be completed before they will accept them. If a I isn't dotted or a t isn't crossed, they reject the docs. Agents and Brokers names need to be in the 700 section complete.
Nope... haven't heard of it and I just had a BofA FHA short sale where I'm representing both sides submitted for final approval after some minor changes were made to the estimated HUD-1 on 03/06/2013.
(The minor changes had nothing to do with line 701 and naming the agent/person since it's the Brokerage that gets paid as somebody mentioned before.)
I don't see an issue with it. Although the listing or sale is "the Broker's", there are potential issues with the following:-
1) arms length (which involves who the AGENT is)
2) some pay a reduced commission to an agent on both sides of the transaction
3) many will not pay commission to a buyer who is also the agent
So I don't see any issue with it, nothing about it is intrusive or unreasonable. After all, there is nothing to hide, is there?
HUD has no objection over who get's paid a Commission as long as it doesn't exceed 6% and State Laws are followed.
Spot on.
HI Linda. We are seeing many lenders asking tho the agent is so they can not give a commission to 2 agents in the same brokerage. They trying to reduce the commission if both agents are in the same office. Its not right and you have to push back.
Amelia
the reason for teh request is so that they make sure the seller or a relative is not getting a commission. I have been asked for a simple addendum stating such. The verbage in the listing is so if they get the seller to sign a deed in lieu or if they assign it to the bank or PMI company and place it in their new short sale auction the listing agent commission gets reduced to as low as 15 for listing and another 1% if they represent the buyer. i am hoping this is one trend that does not expand.
Yes, just had to do the same thing, along with the change in listing agreement verbiage, on a deal in process since August. Also, it has been in process so long that the original ATP expired so had to go back to HUD for re-approval. I did request (maybe a little stronger than request), escalation and got the approval of the "variance" in 7 days as opposed to the 14 BOA said it would take. Now they say we are 10 days away from closing. I want to believe...
-
1
-
2
of 2 Next