Short Sale Negotiators and compensation from lenders
Replies to This Discussion
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Permalink Reply by Jeff Payne on
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Melanie,
I think that some lenders will still pay it but not as many as there used to be. I met with 4 of the large lenders a few times now and they told us that they wont allow it anymore but I think that depends also on the investor. There are some great short sale facilitators on here who will be able to better answer your question.
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Permalink Reply by Christina Conrad on
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WE don't have any issue...I work for a Law Group and we work with a Realty on short sales...On the HUD's I prepare..there is the 6% commission for the Realty Company and a $3,000 attorney fee...the bank pays both....once in awhile...and it is rare...we will have a bank only want to pay 5%....the only other issue I had was with BOA (2nd lien holder)..they wanted $3,000 and the 1st lien holder would only approve $1,000, so we had to lower the attorney fee to get BOA what they wanted or they were going to let the home go to f/c...again, this is rare...hope this helps
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Good info!
Christina Conrad said:WE don't have any issue...I work for a Law Group and we work with a Realty on short sales...On the HUD's I prepare..there is the 6% commission for the Realty Company and a $3,000 attorney fee...the bank pays both....once in awhile...and it is rare...we will have a bank only want to pay 5%....the only other issue I had was with BOA (2nd lien holder)..they wanted $3,000 and the 1st lien holder would only approve $1,000, so we had to lower the attorney fee to get BOA what they wanted or they were going to let the home go to f/c...again, this is rare...hope this helps
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Permalink Reply by Melanie Yorke Tromblee on
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Thank you Jeff
Jeff Payne said:Melanie,
I think that some lenders will still pay it but not as many as there used to be. I met with 4 of the large lenders a few times now and they told us that they wont allow it anymore but I think that depends also on the investor. There are some great short sale facilitators on here who will be able to better answer your question.
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Jeff Payne said:Good info!
Thanks for the input!
Christina Conrad said:WE don't have any issue...I work for a Law Group and we work with a Realty on short sales...On the HUD's I prepare..there is the 6% commission for the Realty Company and a $3,000 attorney fee...the bank pays both....once in awhile...and it is rare...we will have a bank only want to pay 5%....the only other issue I had was with BOA (2nd lien holder)..they wanted $3,000 and the 1st lien holder would only approve $1,000, so we had to lower the attorney fee to get BOA what they wanted or they were going to let the home go to f/c...again, this is rare...hope this helps
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Permalink Reply by Shannon Noble on
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Remember lawyers must now be licensed in the state where the property is located in order to negotiate - Per MARS - just like realtor's must be licensed in that state as well. So be careful.
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Need to have a mortgage originator license in my area.
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Permalink Reply by Smitty on
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@ Melanie - All short sale negotiators must be mortgage originators? Realtors are not exempt?
I think overall more lenders are opting NOT to allow 3rd party fees, but Fannie Mae allows a payment from the buyer for sure.
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In Maine and NH, you must be a licensed mortgage originator to take personal information from a seller and correspond with their lender on their behalf regarding their short sale. If you are a Realtor, I believe you can give limited assistance, but the catch is that you cannot be paid a fee for your services in excess of your real estate commission.
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Melanie, I don't mean to sound confrontational, but can you cite me the law for NH that states you must be a mortgage originator? Because your statement is in direct conflict with law 479:B in New Hampshire. In NH, according to 479:B, you do not need to be licensed to negotiate a short sale. You DO need to jump through extra hoops if you are not a:
http://www.gencourt.state.nh.us/rsa/html/XLVIII/479-B/479-B-mrg.htm(a) A duly licensed attorney at law acting on behalf of a client;
(b) A person who holds or is owed an obligation secured by a lien on any residence in foreclosure while the person performs services in connection with the obligation or lien, if the obligation or lien did not arise as a result of a pre-foreclosure conveyance;
(c) Any bank, trust company, savings and loan association, credit union, or insurance company chartered under the laws of any state or the United States or any subsidiary, affiliate, or agency thereof;
(d) A prejudgment or post-judgment lien creditor of the homeowner;
(e) A person licensed as a mortgage banker or mortgage broker while engaged in any activity for which the person is licensed under RSA 397-A;
(f) A person licensed as a real estate broker, associate real estate broker, or real estate salesperson, while engaged in any activity for which the person is licensed under RSA 331-A;
(g) A nonprofit organization or government entity that offers counseling or advice to homeowners in foreclosure or loan default, if the organization is not directly or indirectly related to and does not contract for services with for-profit lenders, foreclosure consultants, or pre-foreclosure purchasers; or
(h) A creditors' committee or trustee participating in a place of reorganization or repayment through a proceeding under the jurisdiction of the United States Bankruptcy Court.
http://www.gencourt.state.nh.us/rsa/html/XLVIII/479-B/479-B-mrg.htm
If there is a law in NH that states you must be a mortgage originator, it is in direct conflict with the above law.Also, would you cite the law in Maine too. I'd like to read it. I'm assuming Realtors don't negotiate short sales in Maine?
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You can negotiate a short sale as a Realtor but you cannot be separately compensated for your efforts outside of your normal real estate related commission.
Smitty said:Melanie, I don't mean to sound confrontational, but can you cite me the law for NH that states you must be a mortgage originator? Because your statement is in direct conflict with law 479:B in New Hampshire. In NH, according to 479:B, you do not need to be licensed to negotiate a short sale. You DO need to jump through extra hoops if you are not a:
http://www.gencourt.state.nh.us/rsa/html/XLVIII/479-B/479-B-mrg.htm(a) A duly licensed attorney at law acting on behalf of a client;
(b) A person who holds or is owed an obligation secured by a lien on any residence in foreclosure while the person performs services in connection with the obligation or lien, if the obligation or lien did not arise as a result of a pre-foreclosure conveyance;
(c) Any bank, trust company, savings and loan association, credit union, or insurance company chartered under the laws of any state or the United States or any subsidiary, affiliate, or agency thereof;
(d) A prejudgment or post-judgment lien creditor of the homeowner;
(e) A person licensed as a mortgage banker or mortgage broker while engaged in any activity for which the person is licensed under RSA 397-A;
(f) A person licensed as a real estate broker, associate real estate broker, or real estate salesperson, while engaged in any activity for which the person is licensed under RSA 331-A;
(g) A nonprofit organization or government entity that offers counseling or advice to homeowners in foreclosure or loan default, if the organization is not directly or indirectly related to and does not contract for services with for-profit lenders, foreclosure consultants, or pre-foreclosure purchasers; or
(h) A creditors' committee or trustee participating in a place of reorganization or repayment through a proceeding under the jurisdiction of the United States Bankruptcy Court.
http://www.gencourt.state.nh.us/rsa/html/XLVIII/479-B/479-B-mrg.htm
If there is a law in NH that states you must be a mortgage originator, it is in direct conflict with the above law.Also, would you cite the law in Maine too. I'd like to read it. I'm assuming Realtors don't negotiate short sales in Maine?
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