I am just curious how many of you are paying private negotiator costs on your short sales.  According to the Fannie Mae website, fees paid to a 3rd party to negotiate a short sale, aka short sale negotiation fee or short sale processing fee..cannot be charged to the borrow...

 

So my question is this...are most agents paying fees to have their short sales completed? 

What is a normal price to have this done? 

 

There is a rule out that 6% of the balance or $6000 which ever is less, will be paid out to a jr lien.

 

Also, a  $3000 relocation bonus paid to the seller to help them move out. 

 

Has anyone seen a limit put on the negotiation fees?  Again - what's normal to charge/pay?

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Hi Greatchen,

you should not being paying any fee to any negotiator, or adding that to your buyers,
you can go to a good, honest short sale investor, having him out sourcing the negotiations for you
and make double commission when he buys the property. i have seen that some realtors pay a lot of money from
their commission to third party companies to negotiate the short sales.
my people are the home buyers...a young couple just starting out and are being charged the fee by the other seller's realtor, who is running a dba outta the same office.
So what about properties that have a "regular" buyer interested? You don't sell to them?

Negotiators should be paid...not at the agent expense, but paid, none-the-less.
Exactly how does that work? I have an investor who is working with a home owner who had their home listed with a Realtor for 2 years without a sale and it is now in foreclosure. I think he wants to do something similar.
Can you explain this process? I though it was against the law to buy and flip a short sale.
But what is reasonable payment for their services? I have seen everything from $200 bucks, $795, and $3000 bucks. Is there a pay chart somewhere? Is it usually based off the sales price?
We charge 3% of the sales price. The seller, buyer, or agents are not charged for this.
thank you angela. that's what I was wanting to know - just an idea. so you haven't had any trouble collecting that much from the bank? I notice there was a place to put it on the new hud forms from my title company - but i just hate sounding stupid, I figured I would ask here.
We've never had to work for free.  :)
There is no such thing as normal. That is suggesting price fixing. There isn't even an average. If anything it is more of a range and a fairly large one at the that. On top of that we see it done any number of ways.

Yes, some lenders are not only putting limits on these fees, some are refusing to pay them at all. It was mentioned that one way around this is to "charge" the buyer but have the lender pay the same amount as a concession. The only problem I see there is that the buyer now can not ask for help with closing costs as most new loans have set limits and that is already used up by the negotiator.

Or am I missing something.

In my own humble opinion I think a negotiator (a good one) earns every penny. They are doing alot of the work. While, yes, we can do it ourselves as agents I don't know if we can claim being totally hands on is always best for our clients either. We may actually be doing them a disservice. Are we as agents really that good at this that someone who specializes couldn't do better?

Food for thought.

Steele
price fixing? really? airlines to burger joints have an average rate for their fees - I don't think I am asking a lot here for an idea of what negotiators usually charge. I just think $200-$5000 (3% of 175,000 sale) is a BIG range.
It probably varies by area and average home prices. Here in Southern California, negotiators charge 1% of the sales price, or 30% of the agent's commission, but usually there is a cap of around $3000-3500. I see other replies in this thread talking about 3-4%, which seems way too high to me. I do it for other agents for a lot less, but it depends on how many loans and some other factors. Most banks won't pay the fee, so it is up to the agents to pay it.

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