Here's the first line item in this form:

  1. Brokers’ hereby acknowledged and agree that Bank of America is not the property seller, but only the mortgage lien holder (s) or alternatively Servicer acting on behalf of the lien holder, accepting less that the balance owed to facilitate the Short Sale purchase transaction of above said property as an alternative to foreclosure. Bank of America is in no way responsible for Listing or Buyer Realtor / Broker sales commissions, since that is the sole responsibility of the property seller under the terms of the listing agreement. 

Notice the "Bank of America is in no way responsible for Listing or Buyer Realtor / Broker sales commissions, since that is the sole responsibility of the property seller under the terms of the listing agreement."

 

Now, if this is a Fannie Mae file, they have to pay 6%.  But, if it's not...does this mean they'll approve the short sale, but the sellers will be expected to pay the realtor commission?  LOL  I certainly hope not because if they could pay those commissions, they most likely wouldn't be doing a short sale.

 

What do you guys think?

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and just when we thought BOA was improving....
I'm hoping it's a badly worded way to state that since they are not party to the listing agreement, the do not dictate the amount of commission a realtor can get...but I'm sure this is wishful thinking. Of course, if they start denying SS realtor commission, they'll get a whole lot of REOs. And where does fiduciary responsibility come in to play? If the lender denies commission, are the realtors obligated to work for free to do "what's best" for the buyers and sellers?
I spoke to Mike Cuevas and Jeff Watson.  This is a poorly worded attempt to follow Wells Fargo's failed addendum last year. The No Option contract part does not apply to those deals we have because they are not "options."  The one thing that bothers everyone is the commission part.  If it is FNMA owned, they have to pay 6%, but for everything else, they can conceivably deny any compensation to brokers.
It might just mean that if the deal falls apart; then BOA is not responsible to pay a commission.

Angela, you bring up the best point, legally speaking, in a true fiduciary responsibility, agents should be bound to do whats best for the seller and essentially work for free.  Of course, if there is no compensation, is there really representation?  But seriously, I think they just had VERY poor wording on it, lets hope they fix this.  From all contacts I've had at Bank of America, they are exploring ways to cooperate better with agents. (Such as their Realtor guide to short sales).

So if that is their true intent, I would think this is just poor wording.  It almost sounds like they got in trouble legally for trying to negotiate something that they shouldn't be negotiating, and put that specific verbage in there to protect themselves.  In other words saying "We don't negotiate commissions, heck, we don't even own the property...  When did WE knock the commission down... Never happened..."

Only problem I can see, however, is that if agents sign this, they are agreeing that their commission is the sole responsibility of the seller...which could easily mean that the lender does not have to pay it.

I am going to email some of my higher ups at BofA and see if i can get some clarification...I'll let everyone know what I find out.

Mike:

You bring up a good point in questioning whether there's really representation when there's no compensation...especially since our listing agreement is basically a contract in which there's an offer of service for the consideration of payment. No payment should essentially make the LA void, shouldn't it?

if you know who to speak with at B of A and, know how to find out the contact info. for the Investor, 9 times out of 10 you can get your 6%....

 

We negotiate short sales for agents all over the country, and, if everyone is ok waiting an extra 2 or 3 weeks to close (that is often how long it takes to get to teh right person, get the file reviewed and approaved), most of the time we get the full 6% (many agents just want to get to closing, and, since the extra 1% is actuall only 1/2% to each agent, m ost of the time we here:

 

"Ben, just get this to closing, it is not worth the exra 1/2% to me...."

 

Best of luck to all those dealing with short sales!!!

 

Good stuff

It doesn't surprise me, this is another way of discouraging agents from helping distressed homeowners and subsequently allowing bank to resume foresclosures with minimal accountability
But that opens up another question...what falls under the "more than willing to pay" umbrella? 4%? 5%? Slippery slope..

Has anyone signed this addendum  and had no problems with getting paid a decent commission?

 

I would want an agreed upon HUD before signing.

Here is a legal review of these addendums.  All agents should check with their broker before sigining.

http://www.nash-law.com/storage/BOA%20New%20Short%20Sale%20Document...

 

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