Forum

charging for Short Sale as a "BONUS"

Posted by Dr. Rodney K.Elkins on May 25, 2011 at 2:31pm in Short Sale Discussions

I found out yesterday at a local Title Company..that Agents who are providing Short Sale Services...instead of "charging a fee" are writing a BONUS in the listing agreement...

what are your thoughts? I like it!!!!

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Replies

David Dee June 8, 2011 at 7:14pm

More likely than not the lender do not approve of these junk fees. I tried it before and the bank requested that it be removed from the Hud-1 as a condition before approving the short sale. It would be interesting to see how one can get this approved as I haven't seen it 'successfully' get through.
Kenneth Kelley June 8, 2011 at 5:39am

I think it is unethical and I had it happen to one of my agents as Seller Non Allowables. We are fighting this
Eric Mieles May 30, 2011 at 3:37am

The banks are on to this already and they go over the HUD to make sure there's no unnecessary fees that they will have to pay out. They will tell you to take it off and that's that.
Mike Horton May 29, 2011 at 9:48pm

Gerri is right about MARS. This will land you in hot water. Just covered this with a legal panel presentation. A bonus is still a fee and all rules and requirements apply.
Gerri Bara May 29, 2011 at 6:38am

I would be really concerned about whether this complies with the MARS (Mortgage Assistance Relief Services) rules imposed by the FTC. And I think the answer is: no. Before doing this I would strongly urge you 1) review the MARS rules, 2) talk with your broker and 3) consult with your firm's attorney.
John March May 29, 2011 at 6:35am

I don't get this. Realtors are paid a commission.
Scott Korbin May 29, 2011 at 2:54am

I understand that if not shown as Commission on the HUD-1, it would constitute a RESPA violation. Additionally, as stated by others, investor will not likely allow. If this did happen, there might have been a private investor involved. I could be wrong. I often am.
Thom Colby CA Brkr 888-391-5245 May 26, 2011 at 11:12am

I think it's unethical.

Thom Colby

Broker / Negotiator

Newport Beach CA
Judith Sailors May 26, 2011 at 7:40am

I'm not too sure the banks will fall for that...is it working for someone you know?
Jeff Payne May 26, 2011 at 3:18am

Interesting, where are they putting it on the HUD? which line? Do they call it BONUS? Wouldn't the fee the agents are charging be their commission?