For the work that the agents do to complete short sales, it is unreasonable to ask the agents for a rebate which would not be allowed anyway.
By the way, BOA may ask to lower the commission. Further, your agent doesn't get all of that. Rather, it's split between listing and selling agencies, and the brokers get a cut of their split before the agent gets his. So essentially, that commission is split 4 ways. Still want the agent to pay you for working for you?
Listen to some of these agent's answers. Some are using scare tactics so you won't look any further into it! Why? Because they want to keep as much of the commissions to themselves and not share any of it with you! Alot of these agent's answers include patting themselves on the back saying they're so wonderful and they work so hard and whatever else they can think of to guilt trip you into not looking into seller rebate commissions on short sales.
I'm seller in a short sale that is about to close in two weeks. You need to read the "Arms Length Transaction Affidavit (ALT) that is part of your lender's approval letter package you will receive when a buyer's purchase offer has been accepted by your lender to find out if you're specific lender will allow it. Some do, some don't. Mine does.
US Bank is my lender and within my ALT it states the following, "The seller shall not receive any proceeds from sale of the property unless it is reflected in the short sale terms and conditions" So, my lender is NOT saying I can't receive proceeds, I just need to go about it the way the lender is requiring me to in order to be approved to receive a rebate commission at close of escrow. After I read my ALT, I then spoke to my assigned short sale negotiator. She said yes, it just needs to be disclosed to the lender and the lender will make the call on whether they will allow it or not. If they allow it, she said it needed to be included as a line item on the Final Closing Statement within my escrow closing paperwork
Do all lenders have the same ALT verbage as mine? Of course not. Ask yourself, how can these agents tell you it's illegal if they havent even read the particulars of your ALT? My own agent told me it was illegal but he said that cause he didn't want me to know it was possible and he wanted the portion of the total 6% commission he was reaping from my tragic situation all to himself. But, again, I readily found my answer in my lenders ALT and confirmed it with my short sale negotiator.
Do your homework yourself. I'm working within the guidelines I've been given by my lender. I would provide them full disclosure of the rebate commission by including it in my short sale terms and conditions. And because I'm practically at the close of my escrow, if my agent agrees to provide some rebate commission to me, then we will disclose it to my lender. . My lender will the review it and either approve it or not. If it's approved, it will be included in the Final Closing Statement in escrow. But I have a right to ask according to my lender's ALT and that's exactly what I'm doing. Good luck to you A. Thomas. Look out for yourself on this rebate commission business because you're getting a bum steer from these agents answers on this site.
I just wanted to point out if it hasn't been clear, you the seller are not paying the commission in a short sale. The bank is paying the commission. They are really acting as the seller and will pay for the required Natural Hazards report, all seller closing costs in the process. Your bank/lien holder is paying, not you, even though it is your house until you close escrow. Short sales are a lot of work, so choose an agent carefully who has short sale experience, and hope that the bank does not cut their commission! Banks have traditionally paid either 5% or 6% total. WIth HAFA sales, they are required to pay 6% and are not now allowed to cut the commission.. That is great for all of us hard working agents! Good luck.
Not unreasonable to ask, but as you can see (from the responses below), it will reasonably be denied ;) The rules, laws and contracts are quite clear regarding rebates in short sales to sellers.
However, I do not believe that you are allowed to receive any money from the Real estate agent or any other party in the transaction. The $3,000 may be offered to you as moving assistance incentive from the governmet.
Some lenders offer additional sums, I have seen Chase offer up to $20,000 to close short sales.
As mentioned short sales typically have very specific guidelines and as part of the the short sale and the seller is not to walk away with cash in hand. Typically with a HAFA short sale, the bank will offer the seller relocation costs up to $3,000. Whether this is offered or the exact amount offered can change, so you should work with your agent to determine if this is an option.
The level of work, expertise and time on your agents behalf to complete a short sale is pretty extensive. Hopefully you are hiring someone who is has the expertise and the commitment to helping you navigate the short sale process. In return the commission is the the agent's paycheck for the work completed.
Ultimately the bank is actually paying the commission in a short sale, not the seller of the property.
Hope that helps!
And good luck on your short sale