Foreclosure in Chicago>Question Details

Naketa Washi…, Real Estate Pro in Chicago, IL

Are lenders normally fair with commissions for short sales?

Asked by Naketa Washington, Chicago, IL Mon Sep 10, 2012

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12
Jorge Vega’s answer
They definitely are fair but like all transactions you must document. This is to protect you from any changes that may occur during the end of the transaction. I have seen that some agents are placing "subject to lender approval" which protects them against last minute changes from the selling lender side. Just make sure you do your due diligence and always document the transaction.
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1 vote Thank Flag Link Mon Sep 10, 2012
What is fair? On many short sales I think 10% would be fair.
1 vote Thank Flag Link Mon Sep 10, 2012
In my experience, very much so. I've never had a problem receiving the full promised commission advertised in the MLS.

Michael Vrielink
Managing Broker
Chicago Real Estate Artists
1 vote Thank Flag Link Mon Sep 10, 2012
I've negotiated over 500 shortsales in the last 10 years and here and there you'll see a bank being tight with the commission. But lately I see 6% commissions get approved all day, even when there's only one agent involved. Go get 'em!!
1 vote Thank Flag Link Mon Sep 10, 2012
Yes, for the most part, they are fair. My experience has been that they will tell you in the beginning that they will only pay a total commission of a certain percentage, eg., 5%, to be split evenly between the listing agent and the selling agent, but it's not unusual to find at settlement that you've been paid something more in line with what the lender considers to be a "full" commission, eg., 6%.

It's certainly appropriate - and in fact prudent since you have to indicate what commission will be paid to the co-op broker in your listing - to ask what commission the lender will pay for a short sale transaction.
1 vote Thank Flag Link Mon Sep 10, 2012
commision is set per investor's guidelines, GSEs pay 6%, private investors-lender's portfolios -can go down to 3%,
0 votes Thank Flag Link Thu Oct 18, 2012
Most lenders are ok paying a 6% commission, but at times depending who the investor is they will ask for a reduction.

Good Luck!
0 votes Thank Flag Link Thu Sep 13, 2012
They are looking at cutting costs everywhere, but 6% seems to be the magic number that most will accept.
0 votes Thank Flag Link Wed Sep 12, 2012
Short sale lenders can not reduce the comission to a broker. Make sure that you list the property at 6 percent, more than that they wil not consider standard comission.

Good luck,

Maria Cipollone

http://www.Flahomespecialist.com
0 votes Thank Flag Link Tue Sep 11, 2012
yes..I think fair is a good word
0 votes Thank Flag Link Tue Sep 11, 2012
It will depend on the mortgage holder. Bank of America and other major banks have been approving 6%. You must list it as 6% in the listing agreement. If you list 7% or higher they usually knock it down to 5%.
0 votes Thank Flag Link Tue Sep 11, 2012
Not sure what fair would be considered.
0 votes Thank Flag Link Mon Sep 10, 2012
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