Replies to This Discussion

Permalink Reply by Jennifer Monville on February 8, 2012 at 1:27pm

Your question has received many responses.  I have to agree with not asking for more money.  If you think the deal is too much work for the money pass it to someone else.  I have a short sale right now that I will make under $300.  My lowest one.  I would never ask for more from someone who has lost basically everything.  Short Sales are a lot of work no matter what price point.   I rather make $300 then nothing (which happens if the deal goes into foreclosure).  I also look at it this way I possibly will get a referral from some of my sellers.  This has happened several times. 

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Permalink Reply by Linas K Muliolis on February 8, 2012 at 1:35pm

Yes but I have had many short sales close where seller was not in such a bind as others and could afford to pay someone to get them out of foreclosure.  If seller cannot afford it, then yeah, I pass it on to someone else who can afford to work for three dollars an hour.  Not me, I have mouths to feed!

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Permalink Reply by Alisha Wade on February 8, 2012 at 2:00pm

In order to do a short sale, whether you are behind or not on payments, a Seller needs to show a hardship.  Having money to pay an additional commission raises red flags to the bank and could cost the Seller the sale.

We all have mouths to feed, but we have to put their needs ahead of our own!

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Permalink Reply by Linas K Muliolis on February 8, 2012 at 2:01pm

Not in this day and age...  A relocation is enough sometimes!

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Permalink Reply by Roberta Hutchings on February 8, 2012 at 2:24pm

I would not think of asking for a seller of a short sale to contribute to my commission. First of all, if I really want to help someone out of a financial bind, THEIR best outcome is what I'm looking out for. I would feel unethical asking them for more.

Second, to comply with RESPA, everything has to be on the HUD. If it's there, the bank will see it, and at the least demand that they receive those funds at closing. At worst, the lienholder will assume the seller has undisclosed funds at their disposal, and decline the short sale.

While I certainly understand your dilemma, if the small commission is a problem, you should probably refer this to another agent who is less concerned about the commission, and more concerned with getting this deal approved for the benefit of the seller.

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Permalink Reply by Bryant Tutas on February 11, 2012 at 1:54pm

RESPA does not apply to all real estate transactions.

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Permalink Reply by Keith Lawrence, CDPE, SFR on February 8, 2012 at 2:40pm

I just closed a short sale with Ocwen and the answer would be no.  The state on the short sale approval letter the maximum commission to be paid out. 

 

I would show it on the preliminary HUD on the package to the bank.  Let the individual lender decide.

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Permalink Reply by Linas K Muliolis on February 8, 2012 at 2:42pm

LOL Ocwen isn't the bank I would test it out on!

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Permalink Reply by Fred Shocklie on February 8, 2012 at 2:57pm

I do a lot of HUD properties in addition to short sales (I know I am a glutton for punishment) and HUD has recently implemented a minimum commission of $1200 for each side. That might be a way to go. You can always submit it on the initial HUD and then make your case to the bank when they question it.

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Permalink Reply by Jose Hernandez on February 8, 2012 at 3:31pm

Thanks Fred! I give it a shot next time..

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Permalink Reply by Sandy Valenzuela on February 8, 2012 at 3:13pm

On  a property with a value very low such as that, I would make sure the listing agreement gives a minimum commission of 1250 to each side.  I would treat the listing as any other and ask the bank to pay a minimum. This is how the banks have handled our REO commissions on these $30,000 properties, so I believe it has become somewhat of a standard. I have not had a short sale that low yet, but frequently sell REO properties of this value.

Good luck! We provide a very valuable service!

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Permalink Reply by Alisha Wade on February 8, 2012 at 3:29pm

Good luck on that one.  A short sale is nothing like an REO listing.

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