Problems with short sale will write counter letter received below, anyone heard of this before, my agent has not.don' give me enough safe to

Asked by home buyer in CT, 06795 Sat Aug 13, 2011

write all I put an offer for a house of 139k the asking price was 143k, then my agent got a counter offer as follows: Optimista LLC is countering to your client at 130k,which will include their 1k deposit and their closing costs of 3,170.00, leaving them approximately 125,830 as a final payout. ( of this next part is where everyone gets confused.) (optimista LLC) we will assign our contract immediately(releasing our position) to the buyer based on the aforementioned terms for (5,000),payable to Optimista LLC, after successfully closing escrow. If it goes through as a NON-HAFA short sale,we will include payment on the final HUD-1. If it is a HAFA sale,we will take the payment directly from the buyer AFTER the closing.(this is a HAFA federal mandate and we must adhere to it.) This process(offer) will save your client $4,000 from original offer(including our contract assignment fee)and you will keep your entire commission @3% if allowed by GMAC.( anyone heard of this?) is it legal in CT?

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Scott Godzyk, Agent, Manchester, NH
Sat Aug 13, 2011
They should not be asking your to pay anything not on the HUD, it is illegal pure and simple. You should check if negotiators need to be licensed in your state. The key here is did you sign anything with them before teh process started that you would be paying them anything? Usually the negotiators pay is 1% of the sale and is included on the HUD. It is negotiated with your offer to teh bank, banks will pay a negotiator and a commission to the agent as long as it is fair. Any other charges are excessive
Web Reference:  http://www.ScottSellsNH.com
2 votes
Patrick James, Agent, Middletown, CT
Fri Aug 19, 2011
Yeah. Don't pay them a cent and walk away from that deal. This all could have been avoided if the seller actually hired someone that specialized in short sales. There are a few of us in state that do a lot of these, and actually it's a shame, because GMAC has been one of the easier lenders to work with as of late. (Knocks on wood), and they usually get an approval in a few weeks. THANK YOU, for contacting the department of banking on these fools. This is the only way things like this will stop.

Patrick
1 vote
Patrick James, Agent, Middletown, CT
Thu Aug 18, 2011
It is illegal for 3rd party negotiators to accept more than $500 for short sale negotiation in the state of Connecticut. Check out my blog at the link below.
1 vote
Patrick James, Agent, Middletown, CT
Fri Aug 19, 2011
Good. Any talk about suing is all talk, that's it. BUT, in the event they withhold your deposit, or try to do something else crazy, If you need a real estate attorney to talk to, let me know and I can give you a referral to one or 2 that handle short sales as a majority of their business, and who I recommend my clients to on both the buying and selling side. Hopefully you will have better luck on your next purchase. If you are not under contract and would like to work with an agent ( I didn't see you mentioning that you were working with one), I'd be happy to help you out in the future. Representation for buyers here in CT is almost always at no cost to the buyer(Sellers pay the commission 99% of the time). You can find me here, or check out my reviews on google places or Zillow... Take care and good luck! Patrick
0 votes
home buyer in…, Home Buyer, 06795
Fri Aug 19, 2011
Since i first posted this, I withdrew my offer. I wasn't aware there was a 3rd party involved until we got a counter offer. They made it seem they were given me a deal by coming down 10k from my offer, but I would of paid if it was included in my mortgage, I would never give someone 5,000 and a 3% down-payment and they had nerve to expect me cover the HUD-1 which Is the sellers job, not the buyers. so really not saving anything, its costing more out of pocket, In economy we have today to expect someone to come up with over 9,000 not counting home warranty,home inspection, etc.. Then I think the thing that made me totally change my mind about this was, they said if I did not pay them 5,000 at closing they would sue, here i didn't even purchase the house and they already talking about lawsuits, If something starts off bad , It ends up bad. Now I see why house been on market for well over 6 months, actually i feel bad for owner,because that house could of sold 20 times over had it not been for this DN company & realtor.
0 votes
home buyer in…, Home Buyer, 06795
Fri Aug 19, 2011
Actually I contacted State of Connecticut Banking commission and these people trying to do the debt-negotiation are not even licensed in the state of Connecticut. Someone really needs come down on these company's for operating in Connecticut without a license. I did file a report with banking commission on the seller's agent & a company doing debt negotiation without a license in Connecticut. The selling agent is knownly working with a debt negotiation company not licensed within the state.
0 votes
home buyer in…, Home Buyer, 06795
Sat Aug 13, 2011
Connecticut we do not have title companys
0 votes
Terri Vellios, Agent, Campbell, CA
Sat Aug 13, 2011
I am not an attorney, so this is not legal advice. My understanding is if it is not on the HUD it is not acceptable.

Talk with your title company, and your attorney and/or the managing broker to review the document, until you receive an answer you understand.

All the best to you.
Web Reference:  http://www.terrivellios.com
0 votes
home buyer in…, Home Buyer, 06795
Sat Aug 13, 2011
This gets even deeper, on counter offer it says: If your client accepts, Optimista LLC will need all the following, ASAP 1.) A re-rewritten offer for $130k with sellers signatures
2.) A Complete preliminary HUD-1 from your clients attorney to submit to GMAC(buyer pays for this)
3.) A proof of funds letter for your client's $3,170(only if they opt not to request a credit back at closing)
4.)The pre-qualification letter should state an amount your clients is/are qualified for.
So basically they want hold us liable to pay for their $5,000 negotiator fee and pay for the HUD-1 which our agent says that burden should be on seller.
0 votes
Cathy Sloan, Agent, Jacksonville, FL
Sat Aug 13, 2011
Sounds like a 3rd party negotiator attempting to leagally take a hefty "cut" of the sale proceeds as a fee to negotiate the short sale.

http://realopt.com/id3.html

You need a CT Real Estate Attoney to review to detrmine if this is leagal for you to do. Yor agent should have access to an attorney for clarification.
Web Reference:  http://move2jacksonville.com
0 votes
home buyer in…, Home Buyer, 06795
Sat Aug 13, 2011
WE did not sign anything with Optimista LLC, as I said we did not even know they were involved in any of this until our agent received a counter offer from Optimista LLC. I can't find that company on better business bureau and they are out of California so I don't know how to see if they are licensed in Connecticut. Any advice for us? any would be greatly appreciated. thank you in advance
0 votes
home buyer in…, Home Buyer, 06795
Sat Aug 13, 2011
The negotiator is ( Optimista LLC), which we were not even aware there was one until counter offer, strange part is that they DO not want to put that $5,000 to show on HUD-1 if it goes through HAFA. Also I do have an attorney reviewing this and I also plan to call the State banking commission because no-one seems to think this is legal. Optimista LLC is NOT the listing agent.
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Aug 13, 2011
This does not sound right, i do alot fo short sales and this does not seem like a letter you would get from a sellers bank. it sounds like a letter you would get from someone in second position or from a company who is negotiating a short sale. If GMAC is teh lender, the letter should be from them.... The key is who is negotiating this short sale on behalf of the seller? is it the listing agent? or did the listing agent hire a professional negotiator to work on the sellers behalf? i would not pay anyone unles sit is on teh HUD, it is illegal to do so. you may want an attorney to review this....

http://www.trulia.com/blog/scott_godzyk/2010/10/so_you_want_…


Please see my blog with tips and advice on buying a short sale
Web Reference:  http://www.ScottSellsNH.com
0 votes
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