Lately, I've run into two servicers asking for Sellers or Buyers to pay them a Short Sale processing fee, management fee or whatever they choose to call it. A 1% fee seems to be the magical number. Is anyone else seeing an increase in this? It doesn't seem legal...do you know?
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Which banks have you been experiencing this with? And, who do they expect to pay this cost? And, is this fee being asked from a 1st or 2nd lien holder or both?
I just closed one with them on Nov. 23rd 2009, and they didn't ask for this. Fight back! Don't buckle to their every demand. Just constantly point out what a fabulous fair market value deal they're getting and how it's going to cost them $25K to take it back as an REO plus 2% of the value per month in carrying costs.
Which banks have you been experiencing this with? And, who do they expect to pay this cost? And, is this fee being asked from a 1st or 2nd lien holder or both?
No, in my experience this 1% fee is being requested by servicers and has nothing to do with who is negotiating the Short Sale for the Seller
Emily S. Knell said:This is not bank servicers asking for this 1% fee. This is the listing agent who's hiring a short sale negotiator who tries to get a 1% fee included in their HUD as a "negotiation fee", because most banks will not agree to this, that cost gets lopped off onto the buyer. Unfortunately if there is a demand for a particular neighborhood, some buyer will pay for it, otherwise, I would just tell the listing agent to pay for their own short sale negotiator from their own commission.
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