I agree with Ron, and that I would probably just pay (as the Broker) and close the deal. Don't loose sight of the end result...do you still want the home?
I have to agree with Steve. I'm not sure these claims would hold up in small claims court either? I also don't believe escrow has the legal right to influence a sale, threaten to sabatoge the realtors commissions and much less communicate directly with the bank. Short sales are usually negotiated solely via the listing agent or a third party negotiator. By the way, who says a seller (homeowner) cannot make a monetary contribution? That isn't true!
is not really about right or wrong, is about getting the deal done and moving on.. helping to stabilize the economy...
Congratulations on gettng to this point! You are almost there!
Ron Escobar, MBA
Re: The escrow companyâ€™s ability to charge a cancellation fee.....
The State of CA's Department of Insurance Bulletin No. NS-35E (dates back to 1965-66) allows the Escrow company to charge a fee. See: http://docs.Steven-Anthony.com/NS-35E_EscrowCancellationFee.pdf
In my personal opinion, I'm not sure the cancellation fee would hold up in a small claims court case due to non-disclosure.
House price is $460K. Bank only approved these closing fees. Seller not allowed to kick in any $. Real Estate Commission: $27,600, Taxes '10 %5,561, Settlement fees $500, title ins $2,510, tax stamps $506, NHD report $125, payoff 2nd lien $3,000. From my lender I got an approximate loan cost listing title/closing fees: Settlement $1,095, notary $200, lender's title $1,391, comprehensive endorsement $25, CA loan tie-in fee $200, closing protection letter fee $35, closing agent courier/fax/edd/wire $100, owner's title $1,862 (optional), recording fee $140, city transfer tax $2,070 & county transfer tax $506. There is at least $200 is "BS" fees from the Escrow company here so I think I was looking for them to be as flexible as they were asking the agents to be. My agent has proposed a few options for them including sharing the pain but the seller's agent hasn't gotten back to her on it yet.
In an effort to get everything closed, the shortage amount should be split 3 ways between You, Your agent & the Listing agent.
Yes, the escrow co. could charge you a fee after they've done so much work already on your file if you switch to another escrow co. where they're going to charge the same fees anyway & still the short selling bank is still Not going to agree to pay the whole thing. So, you're going to be right back where you started.
Are you getting a good deal on the house in general? Just pay the 1/3 & move in to your new home!
Realtor Since 1996
1st, it doesn't matter who chose escrow because that was agreed upon in the contract (usually). Besides, it sounds like escrow has already lowered their fees to make the deal happen.
2nd, banks are jerks sometimes! :)
Not sure what the purchase price is but the buyer's agent and seller's agent responsibilities are to their clients...although we often do what we can to make a win-win for both parties and close the deal. It sounds like both agents are being asked to pay the closing costs for the Seller. Did the listing agent not inform/educate the Seller that their would be closing costs? If the listing agent is getting 3% they should help their client close this deal...because if they don't they will get 3% of nothing.
I am not one to discount of give up my hard earned commissions, but at the same time I continually educate my clients and set expectations...especially in a short-sale situation.