Question Details

Fred Roven, Real Estate Pro in 02539

Mortgage company wants to put commission in play on short sale.

Asked by Fred Roven, 02539 Thu Nov 1, 2007

How wrong I have been to assume our commission is protected by its inclusion in Purchase and Sale Agreement and our being a party to that agreement. We have been told that once a negotiation begins to reduce payoff numbers we can be told to take it or leave it. Even if the take figure amounts to something considerably less than agreed to amount. And I thought commissions can only be discussed by broker and their client.

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I had an interesting exchange with a lender the other day who told me we really had no valid contract on a "Short-Sale" deal as it was NOT the Seller's decision on the sale but that of the lender. So therefore we were negociating with the wrong person and the Seller had no right to enter into the purchase agreement. I had to remind him the Seller still "owed" the property. I then asked him what if the property had a IRS tax lien or a cloud on the title due to an unrecored easement or note? Then does ANY occurance on real property needing a decision other that the Seller mean the Seller can't enter into a contract to sell?
However he also stated we as Realtor's should just ignore "Short-Sales" the let the lenders get them back, take their licking and then sell them back on the market as REO's. I DON'T like working with "Short-Sales" and we are strictly at the mercy of the lender when it comes to getting paid. You pays your money you takes your choice!!
As Realtors/Licensees I am constantly amazed at how we LET ourselves get roped into these transactions. "Just Say NO!!"
2 votes Thank Flag Link Thu Nov 1, 2007
It is My opinion that you need to protect your commission. " Take it or Leave it?' Tell them no you are getting your full commission. What do you have to lose 1%.

Fred if you wanted to work for peanuts, you can work for any discount soon to be out of business broker.
0 votes Thank Flag Link Thu Nov 1, 2007
Mr.P, Other/Just Looking in Arizona
MVP'08
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