I just spoke with a Bank of America representative regarding compensation for short sale negotiators. She told me that BoA will pay compensation to attorneys, title companies, and other non-realtor 3rd party negotiators for their services in negotiating a short sale.  Have any of you had any experience in this area?

I currently am using a couple of local law firms, but have had several transactions fall through the cracks due to the law firms being completely overwhelmed - documents not uploaded timely and even math errors on worksheets, HUD-1, and other documents.  I have considered taking the short sale negotiations back in-house, but don't have time.  I have a colleague who is an economist, project manager, and property manager, and he has offered to do the short sale negotiations for me, for a contingent fee - whatever Bank of America agrees to pay.  I'm confident that this gentleman can do a much better job than my current negotiators, but want to ensure that he gets paid.

Any ideas, suggestions, comments?

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Teresa,

     From our experience a 3rd party negotiators fee on the seller's side of the HUD is typically does not get approved. Usually our fee comes from the agent's commission or from a buyer only upon a successful closing. We have even seen our fee paid by buyer's closing costs. If you have any questions feel free to reach out to me as my door is always open.

310-564-6389

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www.ishortsalenow.com

Brett - SC is an attorney state, rather than a title state.  We see BoA pay $1500 to $3500 for atty negotiating fees on every transaction.  In the last three years, I have yet to see a BoA short sale NOT pay negotiator fees to attorney.  But this is why I'm asking - I'm getting lots of conflicting information.  Thanks for your input.

Teresa,

      I understand that attorney fee's get approved. If it is simply a "negotiation fee" on the seller's side of the HUD I don't feel that it is a fee that lenders will approve very often. It may be worth a shot to put it on the HUD and try to get the negotiation fee paid that way, but I would be prepared for it to get denied.

Brian - SC is an attorney state, rather than a title state.  We see BoA pay $1500 to $3500 for atty negotiating fees on every transaction.  In the last three years, I have yet to see a BoA short sale NOT pay negotiator fees to attorney.  But this is why I'm asking - I'm getting lots of conflicting information.  Thanks for your input.

BofA doesn't pay any additional fees to a negotiator at all.  They remove necessary fees  at times.  We have the fees negotiated with a buyer ahead of time, or it comes out of the realtor commissions.

I don't know what state you are in, but in Florida, we have some great short sale teams that are linked with our title companies, i can recommend some, and i personally use two companies, and both are awesome.  The buyer pays or i do.

Carrie  -  SC is an attorney state, rather than a title state.  We see BoA pay $1500 to $3500 for atty negotiating fees on every transaction.  In the last three years, I have yet to see a BoA short sale NOT pay negotiator fees to attorney.  But this is why I'm asking - I'm getting lots of conflicting information.  Thanks for your input.

The firm I use takes 1% off the top of the commissions. However, there are attorney's that are now going after Realtors who try to negotiate their own short sales so having a legal backing is advisable.   The firm asks the listing agent to give 2.5% commission to the buyer's agent then 1% to the firm, keeping 2.5% of the listing commission.  Because a listing agent is not allowed to pass the cost of doing business off onto the buyer's agent, this is the most ethical and practical way of setting up the listing agreement.  There is a processing agreement between the listing agent and the law firm.  They not only negotiate the short sale, but they keep your buyer's agent updated on status as well.  Good negotiators are hard to come by.  I understand your frustration!

Jessica - SC is an attorney state, rather than a title state.  We see BoA pay $1500 to $3500 for atty negotiating fees on every transaction, without asking for reductions in real estate commissions.  In the last three years, I have yet to see a BoA short sale NOT pay negotiator fees to attorney.  But this is why I'm asking - I'm getting lots of conflicting information.  Thanks for your input.

Most lenders are stopping any negotiation fees, processing or doc prep fee, no matter who it's going to.  This is also part of the new GSE guidelines.  This pertains to the sellers side of HUD only.  As a third party negotiator, this is one of the reasons my fee is always on the buy side. That way, I let the agents keep 100% of their commission.

www.ssprocessors.com

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