Replies to This Discussion

Permalink Reply by joe beauchamp on June 6, 2011 at 6:32am

Hmm - what happened to the text of your message? Good thing it was in the email??

 

Well, I was thinking that you were OK up until you said BOA is great to work with.  So, you are into masochism..hmm.

I have not heard of REDC.  However, I have found a vast difference in the guidelines given by the investor.  The worst has been a dept at WF which didn't cover enough for a closing - the buyer will likely walk before BOA gets its act together to finally straighten this one out.  My point is that you should look to see who the investor is, not just the bank/negotiator.  It can be quite telling as to what to expect.

 

I'm surprised that you have been able to get your commission always at 6%.  WF, as investor, always cuts it to 5%.  Have you not had any where the investor was WF?

 

With REDC, the legality and ethics seem very questionable to me. The bank is paid to handle the account.  They hire someone and create more losses for the investor by paying someone else to do their job.  It would seem that if FNMA or freddie were in there, someone might be talking jail time for defrauding the taxpayer, no?  (Of course, that would be assuming that anyone is awake at the wheel at either freddie or fannie - they seem to be quite happy with ignoring the tax payer and walking away with their many fed holidays, super retirement, super health insurance and "heavy" requirement of taking 3 calls per day as a workload... HA!)

 

I've also recently seen discussion on a useless "negotiator" company which charges the realtor $99 for signing up for the year and some added fee for processing the files (simply accepting the files uploaded) then grabs 1% of the deal.  (I see the same unethical issue here, of course.)  Well, the comments were that this realtor said NO to them getting the 1% and they backed off.  Perhaps REDC is the same way.  Perhaps they know what they are doing is double-dipping and likely illegal so will back off if you make them.  I don't know, just passing this on, too.

Permalink Reply by Pamela Lester on June 6, 2011 at 6:57am

...had one with Wells Fargo where they tried to cut the commission. I googled Wells Fargo and was able to get some names/phone numbers in upper management.  I was able to get to a very helpful woman where I explained to them this had been the "deal from hell" and I was able to get them a decent offer.  I also advised them that when this market turned around that I and most Realtors will rememeber how we were treated by the short sale banks and that I would share this scenario with every Realtor I could.  Very shortly after that call I was contacted by teh negotiator who advised the commission was back up to 6%.

Permalink Reply by joe beauchamp on June 6, 2011 at 7:18am

Wow!  Very impressive (or, uh, lucky).  All I do is short sales and that is mainly with BOA.  I have found, and not just at BOA, that negotiators are separate from investor are separate from reality and are only concerned about their assigned task - get files off of their desk - regardless.  I only occasionally run across someone who will sit back and evaluate the deal to realize that it is a good deal for the investor - and not just follow some pinhead guidelines (which are actually probably good for BOA since they have a preponderance of pinheads for negotiators...ahem).  I have never seen or had anyone actually tie a current situation with what will happen in 2 months let alone when the market turns around.  And, I have never heard of or seen anyone get around WF's 5% no matter what guideline.

I'm trying to figure it out - I can see "deal from hell" - well stated, could be a huge factor.  I also expect that you got a person who was way up there but unfamiliar with short sales to some extent (I mean, really, dealing in the real world?  A bank person?  That's a stretch, no?) and/or you have a super way of using an exacto knife on a bank.

 

So, who is/was the investor for this one?  Of course, if it is freddie or fannie, it would be 6% and they shouldn't have played with that, so I assume it wasn't one of them..  [Super nice job, BTW!]

Permalink Reply by Jeff Payne on June 6, 2011 at 8:09am

We have been paid 6% by Wells, many many times.  Could be that they are fannie or freddie loans.

Permalink Reply by joe beauchamp on June 6, 2011 at 9:19am

Yeah, as you know, realtor assn is very strong and wondrously got that written in for freddie and fannie - if the contract is 6%, they cannot lower it..

Permalink Reply by Maya Thomas on June 6, 2011 at 3:56pm

I send the files directly to GMAC and also get assigned and REDC contract who takes 1% of my commission too.  They say to pay up or no deal.

Permalink Reply by joe beauchamp on June 8, 2011 at 4:51pm

Sounds like you might have people come into your candy shop and demand "insurance" payments or "something might happen to your shop", too, eh?  ;-)

I have not dealt with REDC - just did a very quick scan and could not find the person who said she just told them NO and they didn't get paid.  Now, if you are an extortionist, wouldn't you say the same thing that they told you? (answer is YES)

I suggest you look for the message where the realtor said that REDC demanded 1% and she just said no and they didn't get it.  I am fairly sure it was on thie forum (the other one I go to is short sales specialists).

You might make headway by finding the investor and questioning them about double-dipping like this (if it is freddie or fannie with the strict rule that they WILL NOT lower the commission below 6%, how is it that GMAC is allowed to overrule that law?  I don't think so... and they do this jeopardizing the taxpayer money? Hmmm..).  You might also get to someone in management at GMAC and ask them about being paid to handle the account and then demanding an extra 1% cut on a deal where their boss, the investor, is losing money and what the investor would think of them jeopardizing a better deal by their double-dipping to just do their own job, etc.  Get names, throw around some banking laws, let them know that their name could be on a docket in front of a judge, etc.  You might find that after that conversation a simple, "I don't think it is ethical for me to pay that" could just get it dropped (hmm, maybe give them a few of the comments here and tell them that you are submitting their demand to your real estate board - you don't want to be a party to some possible criminal activity -- maybe too strong?  Maybe).  But I don't know.  I just know that I've been in many similar situations and there is a lot of bluff from banks and absolutely illegal things go on, too.  So, calling them on one and sticking to your guns will get you 1 of 2 results, no?

I've only recently done a couple with GMAC (and have liked their negotiators, so far).  But, assuming that they are like most banks, I would stick to my guns for important things and end up resubmitting the short sale if, as happens, I have the pinhead negotiator who won't do the right thing.  I suspect that you can do the same.  If GMAC or their negotiator, kills the deal, then just resubmit it.  You can back down the 2nd time - your choice.  Or, you can fight it to a lesser degree to see if the negotiator folds, etc.

 

As I keep getting told, until the house is gone, the deal is never over (I have plenty of resubmit's).

Permalink Reply by Pamela Lester on June 10, 2011 at 4:41am

Ok people, hang on to your hat..... Regarding the GMAC commission reduction from 6% to 5% and the mandatory 1% fee due the 3rd party which GMAC hired............. I called the customer service phone number and asked to be connected to someone who could help me out with an issue I had regarding the commission ding the 3rd party (REDC) negotiator hit us with.  I specifically asked to NOT be connected to the short sale department.  I spoke with two customer service managers explaining we work hard for our commissions and we would remember GMAC when this market turned around and that Bank of America and Chase didn't cut our commissions.  My complaint must have gotten back to the 3rd party negotiator because the next day I received an email from the REDC 3rd party negotiator stating the commission was 6%, becasue I got 5% and he got 1%.  What a joke!  Anyhow, I politely sent him an email back and said if the commission was 6%, that is what I would be getting.  I told him that his pay structure from GMAC was between him and GMAC and they didn't have a right to take part of my commission.  I went on to tell him that I was not going to hold up the short sale for the 1% BUT that I was not done making calls to GMAC.  I told him I was going to make it my priortiy for the day to google GMAC board members and let them know that I would have to think twice about helping another homeowner with a GMAC short sale.  Guess what...... I shortly received this email from the negotiator: 

"Let me review the offer and if I have all the documents I need I will submit for investor approval.  Also, GMAC has allowed an exception in this case to allocate 6% commission on this transaction.  If I need anything prior to submitting I'll contact you directly".

 

YAHOO!!!!!!!

 

Permalink Reply by Jeff Payne on June 10, 2011 at 5:31am

Good job Pamela!  You always have to push through to find someone who can say yes

Permalink Reply by Pamela Lester on June 10, 2011 at 6:22am

Thanks Jeff.  I think the negotiator didn't want me to make more waves with GMAC.  I wonder if these 3rd party negotiators actualy have the power to change the commission themselves???