Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on January 16, 2012 at 10:24pm

Jeannie,  They all try to cut commssions.  If the Servicer/Lender hired them it is their responsibility to pay them.

Permalink Reply by Ben Benita on January 20, 2012 at 4:59pm

I negotiate short sales for agents and STRONGLY suggest every agent put these 2 sayings over your desks:

"THE PERSONS I NORMALLY DEAL WITH ON SHORT SALES ARE CALLED "NEGOTIATORS",
THEY GET PAID TO "NEGOAITE", IT IS THEIR JOB AND SOLE PURPOSE"

and

"NEGOTIATORS ALL GET PAID ON FRIDAY, I ONLY GET PAID IF THIS CLOSES!!!!!"


Keeping it as short as possible, best way to overcome the 5% commission issue, find out who the Investor is, contact THEM directly circumventing the Servicer altogether, and, 9 times out of 10 you WILL get your 6% (we have even gotten 7%, I have an HSBC approval available from 10 days ago if you want proof).

Good lines to use when speaking to the Investor/decision maker:
"My broker says we can not agree to the 5% commission, can you make an exception just this once"
This line puts you in the middle, and, not stand-offish.

or

"If the Buyer increases his/her offer by 1%, can you approve 6%, just this once, so you still get teh same "net"?"

Again, make it as EASY as possible for them to say yes, closing with "just this once" gives them an easy out.


Also keep in mind "negotiators" get paid to get as much money as possible for the Investor on the note, IT IS THEIR JOB AND WHAT THEY ARE TRAINED TO DO....never ever forget this!!!!

Many negotiators actually get in trouble if they accept your first offer, and, some actually get BONUSES for each time they make you send them a HUD with an increase in the "net".

Keep fighting guys, know this:

EVERYTHING ON A SHORT SALE IS NEGOTIABLE!!!!!

Permalink Reply by Kevin - Greenville, SC on January 21, 2012 at 3:19pm

right on as usual.

Permalink Reply by Jennie Blackburn, Realtor, CDPE, on January 26, 2012 at 7:46pm

I really like the "just this once" idea.

Permalink Reply by Joseph C. Alfe on January 20, 2012 at 5:20pm

I only have maybe 5% of cases where commission is being cut.  Unless the lender owns the loan, in which case they can do whatever they want, tell them to stick it and pay the 6%.

Permalink Reply by Sabrina Teplin on January 23, 2012 at 9:58am

How do we find out who the investor is?????

Permalink Reply by Patti Guilford on January 23, 2012 at 10:27am

Try Fannie or Freddie loan look up first. 

Permalink Reply by Jennie Blackburn, Realtor, CDPE, on January 26, 2012 at 7:44pm

Agreed!!!!

Permalink Reply by Sheila Vardakis on January 17, 2012 at 12:32pm

I wish I had some good news for you on this one but I haven't found a way around it either.   Let's hope someone can give us some words of wisdom with this topic.  Sheila

Permalink Reply by Chris B Johnson CDPE on January 17, 2012 at 12:43pm

This only applies to FHA, but I have used it on "Investor Owned Notes" and it works sometimes;

"Commission to be 6%; The real estate commission that may be paid is the amount indicated in the listing agreement between the borrower and the listing broker, neither the servicer, nor the investor is a party to this contract. The commission may not exceed 6% of the sales contract price.  The lender/sevicer may not require, as a condition of approving a short sale, a reduction in the real estate commission below the commission stated in the SSA. (MHA Handbook v 3.0, Dec. 2, 2010. See SPA Servicer Agreement. "

Permalink Reply by Anthony Sherman on January 17, 2012 at 1:00pm

Do you know who the investor is?  If it is Fannie Mae or Freddie Mac, both have short sale policies that do not allow for commissions to be cut by the servicer or third party unless the commission is above 6%.  

I had a similar experience 4 months ago with short sale file being processed.  I responded directly to the third party, sent them copy of Fannie Mae Short Sale  Commission Policy and they begrudgingly backed off.  They did say if they bowed out the short sale would take longer to close which was not true. 

If you do not know who the investor is I would still push back hard.  I like Chris Johnson's idea posted above.

Permalink Reply by Terry L. Osburn, SFR on January 17, 2012 at 1:10pm

Great comeback Chris....will keep this in my arsenal...

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