Negotiating a SS on a BOA loan. It was not allowed to go through equator. We were referred to a different department we've worked with before, but then they said they couldn't take this one and we had to go through IMPAC.
We just got our "Conditional Short Sale Approval". They are only allowing the seller's concessions toward buyer's closing costs if the buyer uses IMPAC financining. They are requiring the listing agent sign a fee agreement and commission disbursement agreeing to pay IMPAC 1% of the commission. This is in addition to a "Campaign Management Fee" of $1,300 and the BPO fee of $450 they are invoicing escrow for.
I'm researching them trying to figure out who they are, what their role is, etc... This seems extremely improper. Has anyone dealt with them before?
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I'm not an attorney but I don't think they can REQUIRE anything. I think they can encourage it, but then again, I'm not sure. I know in my area lenders of REO properties constantly require a buyer to use them to secure financing. I think in that case it's legal because they are the owner, and that's a condition of the sale, but you are right. Impac does not own the home, so requiring it is a big question
You are dealing directly with the investor. I believe IMPAC is an investor. I don't like the other terms, but it may speed the process.
Yeah, that's what we thought. The questions becomes whether it is a RESPA violation for the investor to require a party to the transaction to use their realtor and to use their mortgage company. I have been involved in a few RESPA skirmishes as an attorney, but this is very tricky. A seller can require a buyer use a certain mortgage broker as long as the seller is not receiving a referral and/or they are not affiliated with the mortgage broker. Here it's not the seller making the requirment, it's the short sale investor, who happens to be licensed with the DRE and their MLO endorsment. Even though they are not the seller they are a lender requiring the use of a settlement service that they are affilated with.
I can't find any other postings anywhere on the web about Impac or their conditions. It's like this is the first time they're trying this. It smells pretty bad. I'll see what further information I can get from Impac directly tomorrow.