Homeward Residential Sends approval and Hires it's own company (Power Reo) to Assist in the sale taking almost 40% of the sales agents commission in the process.

I just received a letter approving a short sale with Homeward Residential.  The approval states that they are also hiring there own real estate company to assist in the transaction at a cost of over 40% of my commission.  I looked to see if they had a real estate licence in my state.  Nothing.  Is this legal?  What would your response be?  Thanks

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Comment by Kevin - Greenville, SC on February 3, 2013 at 3:43pm

Just received a HAFA Approval from them the other day.  6%

Comment by Pat Perrotta on January 28, 2013 at 4:27pm

Just got an approval from Wells Fargo in 15 business days paying me 6% as I have both sides and a $2050 attorney fee!  Of course, this property has had 2 other offers, one considerably higher than this one and were both countered way high.  Has been listed from 7/18/11, so it seems like it has been going on forever.  Got to give credit where credit is due!  Yay!

Comment by Pat Perrotta on January 28, 2013 at 2:27pm

As if it only takes half the work!  It's actually harder when you are on both sides, as you have to juggle the buyer and seller.  Too bad they don't understand that!

Comment by steven vanderlaan on January 28, 2013 at 2:24pm

I just received another commissionectomy from BofA.  They are only allowing 4% commission because I represent both sides of the transaction!!!  These banks are scoundrels.  So frustrated.

Comment by Pat Perrotta on January 28, 2013 at 2:01pm

I have a short sale where Seterus is the servicer.  Loan Resolution said they would take 1% of my commission to get the short sale through or I could go directly to Seterus, but would take longe.  I called Seterus, and was routed to Loan Resolution, couldn't even speak with Seterus about doing a short sale bypassing L.R.  So I had no choice but to agree to their 1%.  Does anyone know of any other options?  I would love to say NO, but looks like I have to work with them.

Comment by Cyndi Carver on January 26, 2013 at 6:15pm

I just received to approvals from Homeward Residential and they only took 1/2 % on both of them. Power REO also told me that they were just purchased by Ocwen. So I think they are planning on doing the same thing with their short sales as they are doing with their REOs. One problem, they have an owner to deal with and I am not sure they can say they have to be the listing office. Can you imagine the kind of problem they would have?

Comment by Eloise P Wexler II on January 25, 2013 at 10:34pm

While we're on the subject of Realtors voluntarily giving their money away....

Question:  How does everyone out there feel when the lender decides to 'allow' even less commission (as if that's possible) because the listing agent and the selling agent are in the same office? 

I KNOW how I feel.....and hopefully your broker feels the same way, because he just got a pay cut, too!

Comment by Sonda Hilario on January 25, 2013 at 8:49pm

Wow, great info here, thanks to everyone for sharing. We just picked up one from Homeward and are about to list another Monday. I have never dealt with them previously. However after seeing this email I contacted my Broker's Short Sale Processor and asked her if she had ever seen this and her response is attached.

"This was on one of Bill's listings and he had an attorney get involved and write a letter to the bank. We were able to get approval for the buyer fee waived and no .5% to Power REO. The attorney fee ended up being about $450. no fee was paid to Power REO and buyer was not charged. However, the deal of Bill's was not a Fannie or Freddie and was processed through Equator. Your short sale investor is Freddie Mac, so it is not being processed in Equator and the transaction may be done differently. The referral came during negotiations and reviewing the HUD. When we requested to not pay fee to Power REO or buyer's fee the negotiator would not budge and that is why Bill got an attorney involved. It took several emails from the attorney to Homewards legal department."

So yes, we need to say no to third party companies trying to dip in our pockets for doing nothing! I'll have to let you know how our Homeward Freddie Mac negotiations go in a later comment! 

Comment by Ben Benita on January 25, 2013 at 7:51pm

KNOW THIS - banks have teams of attorneys working around the clock to get as much money as possible for their Investors.....some it is just "dirty dirty tactics".....like circumventing an agent on an approval letter.....legal I assume, BUT JUST DIRTY!!!!

Yyou nailed it on the head with "REALTORS LET THEM GET AWAY WITH IT"!!!

As Mike pointed out in his "price fixing" post, complaining here does NOTHING to change things.....

It does indeed feel good to "vent", but nothing will change unless someone contacts NAR or complains to the right persons (EXACTLY like a short sale, complain to the underlings and NOTHING changes or gets done, complaint to those that CAN change things......and you will make something happen)!!!!

Ms. Wexler - HOPE TO SEE YOU ON THE CRUISE.....not many agents out there with a backbone and the nerve to speak up!!!!!

Write this down - EVERYTHING ON A SHORT SALE IS NEGOTIABLE....INCLUDING YOUR COMMISSION!!!!

and as pointed out below

IT IS OK TO SAY NO!!!!!!

All my best to everyone....and WATCH YOUR BACKS (and your commissions)!!!!

Comment by Eloise P Wexler II on January 25, 2013 at 7:05pm

Shouldn't this practice by these thieves be considered a RESPA violation? 

Why are these snakes (all of them) always rumbling around in the REALTOR's pockets?  If it weren't for US they wouldn't even have a deal!  Is this part of the 'No good deed goes un-punished' scenario? 

This is how the banks, servicers, out sourcers and the like started chipping away at the listing agent commissions on the REO listing side of things! 

The shame and disgrace of it all is that REALTORS LET THEM GET AWAY WITH IT!  Now that the market has changed to a short sale heavy marketplace - they are going to try their darndest to get into our pockets and wallets!  Realtors need to band together, join hands and face them all with resounding rejections to any attempt to cap/cut/slice/dice or lower our 'usual and customary' commissions in any way!  We work long and hard just to get to the closing table on a short sale - and this is the 'thanks' that they reward us with?

By and large, its Realtors as a group's fault because we let them do it in the first place!  We did not stand together as the strong, solid group of licensed professionals that we are! 

Since WHEN does anybody agree to a pay cut so that your hard earned money can end up in someone else's pocket - that has done NOTHING for the deal - just because they are 'hinting' or even threatening not to approve the short sale?  That alone, right there is opening themselves up to a class action law suit from all of the short sale homeowners who have been affected by this deceptive attempt to insert themselves into OUR deals!

Learn to say, "NO!"  And, if you are having a problem with that word for some reason - keep a copy of your running bank balance posted on your bulletin board so that you can look at it and say "NO!" even louder and stronger and with more conviction!   That's what I do and will do when any outside entity tries to ROB ME!


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