I just now heard from a 2nd lienholder on a Freddie Mac loan that they would not approve the short sale if there was more than 5% total commission in the transaction to the 2 Realtors involved. This transaction has been a year of hard work marketing and getting a solid buyer to this point!
TD Bank said they would not approve the short sale if I didn't reduce my commission to 5%. These transactions take a phenomenal amount of work and the commission is determined and agreed upon between buyer and broker - not the bank.
I've had success with BofA. They will not cut your commission if you ask for 6%. They may try to counter it but, if you refuse to accept, they will pay it. The Counter Offer Worksheet defaults to 5% so be careful! If you miss it you may be cutting your own commission!
I refuse to write on any more BofA properties, will not list BofA properties, they are screw the agents and the buyers/sellers. The government is not doing anything to stop this. NAR is not doing anything to protect its realtors either, we are all alone like dogs!
I have been working to get a short sale approved since March of 09. Now the bank wants to cut my commission. They expect that we will make nothing for our effort. Stop the thievery!
This is an absolute necessity in order to clear out the overload of inventory of distressed properties for sale. When the lenders act as principles in the transaction, (such as dictating "As-Is" clauses and commission reductions) the likelyhood of failed closings increases. This type of activity will only prolong the recovery of the real estate market which hurts everyone. SInce most banks are participating in the "shared loss" arrangement with the Federal Government, we, (as in We the People) are the ones paying the price for these bad decisions.
Yes. I am in the resl estate business and have been for over 20 years. This type of action on the lender's part does impact my business a bit. However, I am more concerned that in impacts the underlying value of properties throughout the country as well as the investments of people throughout the world. Think about that for a minute. This is fast becoming a global issue and the minor benifits derived from commissions will in no way make up for the long term deterioration of real estate values.
This is called coercion: Abusing a position of authority to make someone do something that under normal circumstances they would never do. And that's illegal!
We have been working on one short sale file since last November. It is on the verge of closing, and our commission was cut to about 0.75% of the contract price. Ridiculous!
Realtor's are paying association dues, trying to make lemonade out of the mess the banks got us in and now they want to cut commissions...that we normally put in hundreds of hours and wait months for a check. Do the right thing for the "commissioned sales people" who do not show up on the unemployement stats
We need to collect information and submit it to Congress regarding the dollar amounts of short sale offers that banks deny vs what the homes actually sell for after foreclosure. It's a disgrace!
We provide the labor that the banks aren't willing to do and then they want to control our income. We are by the cheapest labor they have, ask any of their lawyers.
Banks need to streamline their procedures for processing short sales. Realtors spend more time and money working out short sales that eventually end up saving banks money they would have lost through foreclosure proceedings. Then they have the audacity to cut our commission to the point where we (Realtors) would have been better off letting the home fall apart, leaving the lenders with even less money. The effort required to put a short sale together should not be this difficult!
The short sale process is a farce. I have one right now that we have been waiting for lender approval since the seller ratified it 6 months ago. Last year, I had one that languished with lender for 5 months, then they foreclosed. No wonder the mortgage market is such a mess. Lenders have no common sense.
I am not a realtor but I am most thankful and appreciative for the help of my realtor during my house buying experience. Without realtors, buyers would truly be at the mercy of (as we have all seen in recent history) the predatory practices of the banking industry. Realtors work hard and should not be asked to pay for the bad loan decisions of the banks. (at least no more than all of us have had to pay as tax payers)
I have lost too many deals to count in Short Sale. What a scam. Banks are arrogant jerks. I really wish more had gone under and we had not bailed any of them out. Then maybe they would understand the Realtors position, the poor sellers position and work with the qualified buyers we are providing them before the property goes downhill over hot summers and freezing winters.
How easily the banks forget that if we didn't bring buyers to their short sales and REO's, they'd still be saddled with most of these properties. Time to work with us, not against us, banks!
Changing the commission after a contract has been accepted (which by the way can take many months) is an unfair way to get our assistance in getting these homes sold and occupied. Are these not the same banks that received bailout funds?
I too, have written 2 offers: 1 is dead now due to the same bank problems, the other is close to dead, I wrote the offer in June, 2009, there again the bank!!!!!!
There's no reason short sale approvals cannot be accomplished within a time frame limit. The endless delays are significantly affecting real estate markets around the country in a negative way.
we do alot of work to try and get the banks more money than if they foreclosed. We should recieve full 6%(if not more for dealing with the whole process)commission!
Petition to Prohibit Lender Cutting Real Estate Commission as a Pre-Condtion to Approval of a Short Sale Contract.
74 People Have Sent 40 Letters and Emails
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Some recent comments: these messages are published with permission of the signer.
Yes. I am in the resl estate business and have been for over 20 years. This type of action on the lender's part does impact my business a bit. However, I am more concerned that in impacts the underlying value of properties throughout the country as well as the investments of people throughout the world. Think about that for a minute. This is fast becoming a global issue and the minor benifits derived from commissions will in no way make up for the long term deterioration of real estate values.
This needs to change NOW!
Nathan Thompson
License # 42510
Sign the Petition