I've completed approx 50 short sales in the past two years and have never had to defend my commission previously. I just got countered by PHH to reduce to 4%. This may seem silly that I never had to learn this and how do I combat the reduction?
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Good luck getting that one to stick. The lender does not have to approve the short sale, they are under no obligation to do so and if they do approve they can agree to any amount of commission they choose as much as it pains me to say that. The article that you mentioned is 5 years old and it really is not the same thing that is happening here
Right, the "tortious interference" argument didn't last as long as the "show me the note" defense. Sarah, are the buyer and seller agents in the same brokerage? That's where I see 4% the most.
Are you doubling ending the transaction? What is the purchase price? Many times on larger deals with purchase prices 750k+ investors will only allow 5% commission. Also, depending on the investor and mortgage servicer, if you are double ending a deal, they may reduce commission as well. You need to find out the exact reasoning the commissions are being reduced. At that point in time you may be able to restructure the deal and potentially be able to salvage another point or so.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com
Not double ending - 300k pp, PHH servicer, unclear on investor.
You should likely push back on commissions. Will the mortgage servicer advise who the investor is on this loan? Not sure off top of my head if PHH MTG. only allows 5% max commission, so that would be worth looking into, but It does seem strange they countered at 4% according to the information you provided. Could this be due to the minimum NET proceeds to the investor?
Who is the investor? Do you have both sides?
Don't know - Fannie site says it's not theirs - MERS shows two loans originated on same date - one investor is HSBC and the other is listed as Fannie. MINs are different. Both are listed as inactive as they have been discharged in a Chpt. 7
I do not have both sides and other side isn't in brokerage either.
300,000 pp.