Question - Can a real estate agent BUYING an FHA short sale property (Seller has an FHA Loan that is being shorted), get paid a commission?

I have been doing short sales for more than 8 years now for agents all over the country and EVERY time a Servicer has known the Buyer is an agent and is expecting a commission, the commission gets denied...always has in the past.


I have a "situation" in Virginia where one closing attorney says his client CAN get paid when he buys a short sale property for himself.

OF NOTE - This attorney does about 5 closings per month for this agent/Investor.



The agent that is buying a short sale for himself is using an LLC on the sales contract.  His buying and having the LLC has NOT been disclosed to the bank and he is demanding to get paid his 3% commission.


I have tried reaching out to:

The Servicer (keeping the name off here for now) - was only read the FHA guidelines, which are of course filled with "legalise" that seemed to go either way.


Called HUD - 800-CALL-FHA - told me to call RESPA


Called RESPA - 855-411-2372 - they said they could not tell me and said to try NAR


Called NAR – 800-874-6500 and they said they can not give out "legal advice"?


Any help or feedback is GREATLY appreciated.



Again, ANY help, thoughts, guidance or feedback is welcomed and appreciated (and can be directed straight to me at if you have any "lengthy or legal" advice on this you wish to keep private.


Thanks again....all my best to everyone.


Ben Benita



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I've always said, "Nope..not gonna happen."  And then, in December, it did.  The agent didn't hide anything, her name matched the name on the contract.  They requested she sign an acknowledgement stating she wasn't affiliated with BoA or any of the management companies, but nothing else regarding being an agent.  She filled out "per MLS" on the contract and they paid the full commission, so the title company paid her.  We are talking a whopping $ 625 but nonetheless it was paid. And yes we were shorting an FHA within the PFS program.

Ro, sincerely appreciate the input.....I have been EVERYWHERE and no place does it specifically state the BUyer can NOT get a commission?

CRAZY b/c there are a LOT of Servicers and Investors out there that forbid this (we have had this come back at least 5-10 times)

Lesson Learned - The Buyer's Agent CAN get paid a commission and like ALL short sales - EVERYTHING is case by case, property by property!!!

Best of luck....You coming on the cruise this year????

Hi, Ben.  No, not cruising.... but sailing through lots of short sales. LOL  Okay, "sailing" may be a bit of an exaggeration!

Have a great day!

I am just now realizing someone installed an app/bug on my phone that IMMEDIATELY directs me to the MOST INCOMPETENT people at any bank.....

This new app seems to work AMAZINGLY well!!!!

Hi Ben, I am not one to do a blog but saw yours come over and could not resist.. I do a lot of BOA and actually had attended one of their conferences. They had made it very clear that buyers who are licensed agents wanting to purchase a short sale of theirs cannot be paid a commission. Actually the Bank of America Short Sale Real Estate Licensee Certification line 6 specifically states receiving any compensation, remuneration or benefit from the completion etc.. (refer to this agreement) if that Licensee signs it and is also the buyer, then in my opinion that is Fraud.. no money in the world is worth my license.. thank you very much.. Now on another hand if he is LLC, and is only registered agent representing the Liability company and the Articles of Corporation is submitted to Bank of America, I believe that is acceptable as long as they are not owners but only registered agents managing for the company.. had one close like that and it was acceptable.. with disclosures.  

Great point!

Actually, Laurie, on this FHA SS BoA required only one addendum, aside from the standard SS addendum and that was the BoA Buyers Acknowledgement and Disclosure.  That form states that the buyer is not affiliated in any way with BoA, nor are they affiliated with  HTS (Home Transition Services).   Neither I nor the buyer signed the SS Real Estate Licensee Certification, nor was it ever requested;  had it been we would not have lied and risked losing our licenses. No amount of commission would have been worth that... certainly not the $625 I referenced earlier.


Hi Ro, we are now required to fill out the licensee certification.. I am doing several right now that is with them.. everyone that I have done..  and I agree with you no amount of money is worth it.. :) 

I have gotten it approved 2 times in the past year. 2 times with BofA and once with Chase. Chase did mention it being a problem at first but then it ended up going through. I don't know if it is because they forgot about it and missed it on the final approval or what. But the next one I asked ahead of time and they said as long as they meet their net it would be okay. Both buyers were an LLC.

What these banks fail to realize us they are paying the broker not the agent. That is how I have been able to get past this every time. The broker must be paid their fees on every file at both my CA and AZ files. . All agent must be paid by their Broker so that is who the bank is paying not the agent.

As I have learned time and time again - document, disclose and move on.....

Thanks for all the feedback!!!



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