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Old 06-13-2009, 05:57 PM
 
Location: Salem, OR
15,518 posts, read 40,267,236 times
Reputation: 17401

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Quote:
Originally Posted by Brandon Hoffman View Post
If it's a short sale I don't understand
1-why the listing agent isn't getting the bank to pay the fee
and
2-why the seller went with a limited service company since they aren't getting back anything regardless.
I agree that it is bizarre. I guess I am thinking that the listing agent is worried their commission will be cut and wants the buyer to guarantee it or something?

It's weird...that's for sure.

Snoopy2009

Yes, they do have to present the offer, and no you won't be able to call the bank to verify. The bank won't talk to you without a release from the seller. You also have to remember they don't have to present it to the bank, they have to present it to the seller. The seller is the legal owner. Once the seller signs off, then it goes to the bank.
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Old 06-13-2009, 06:34 PM
 
57 posts, read 204,859 times
Reputation: 45
Well then, I guess the best we can hope for is that the seller will counter that we pay our buyer's agent a commission, and accept the rest.

Of course, all this is moot if a cash buyer comes along.
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Old 06-13-2009, 07:06 PM
 
Location: Palm Coast, Fl
2,249 posts, read 8,879,636 times
Reputation: 1009
If it's pre-approved, ask to see the HUD statement that was submitted to the bank and the approval letter for the short sale. You will then know if the bank approved or didn't approve the listed price and if that price did or didn't include the commissions already.
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Old 06-13-2009, 07:11 PM
 
57 posts, read 204,859 times
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Quote:
Originally Posted by palmcoasting View Post
If it's pre-approved, ask to see the HUD statement that was submitted to the bank and the approval letter for the short sale. You will then know if the bank approved or didn't approve the listed price and if that price did or didn't include the commissions already.

That is a fabulous effing idea.

Our buyer's agent would request it of the listing agent, yes? (Sorry for stupid question.) And I assume the question will be dodged for awhile, since the answer may be somewhat incriminating. Can the listing agent refuse?
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Old 06-13-2009, 07:33 PM
 
Location: Palm Coast, Fl
2,249 posts, read 8,879,636 times
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Yes, they would request of the listing agent. I don't see why it would be dodged. You can predicate your offer on it. If someone were coming in with a full offer on a short sale that I had and requested the information, I would gladly give it up. It's no different, IMO, than you ad a buyer having to submit a pre-approval or proof of funds. There are two ways to have a pre-approved price. 1. they submitted a contract w/ HUD statement, the deal was approved at a price within a certain closing period and the original buyer walked, or they submitted a HUD statement based on a non-existant contract and got the letter with the actual approval, again with a closing time frame. If they have it, why not show it?
If the price is actually approved but the HUD did not account for Realtor® fees or the bank would not approve Realtor® fees, then you'll know why the listing has the buyer paying fees...obviously the seller isn't able to contribute. If they don't have anything in writing then it's not actually approved. If the negotiator has said, we'll take such and such, that's nice but it's not approved and a HUD can be submitted with a particular price and commissions being paid by the bank. But..that can all take time. Which is what I would tell the listing agent... "I'm dealing with a buyer who can not waste time. We need to see the approval letter to verify price and terms".
If this was on the mls and the listing agent offered out a commission, which they have to or it can't go onto the mls, as stated in another post, the listing agency has to pay that commission out.
But your agent should know all of this...if they aren't sure how to proceed they should speak with their broker. (the commission agreements are from brokerage to brokerage)

Edit:
Quote:
Can the listing agent refuse?
Sure they can refuse. But then the brokers get involved. If the agent is erroneously listing things on the mls, well, that's a pretty big no-no and personally I would be filing a complaint at the local association board so the little cutie doesn't do it again. If there *really* is an approval, I can't imagine what the reasoning behind not showing it could possibly be.
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Old 06-13-2009, 10:13 PM
 
57 posts, read 204,859 times
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Quote:
Originally Posted by palmcoasting View Post
Sure they can refuse. But then the brokers get involved. If the agent is erroneously listing things on the mls, well, that's a pretty big no-no and personally I would be filing a complaint at the local association board so the little cutie doesn't do it again. If there *really* is an approval, I can't imagine what the reasoning behind not showing it could possibly be.

This was pertinent information, so I'm sorry to include it late. I believe the listing agent is also a broker.
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Old 06-13-2009, 10:29 PM
 
Location: Palm Coast, Fl
2,249 posts, read 8,879,636 times
Reputation: 1009
IMO, if your agent is not the broker then she should be taking it to her broker and let them get to the bottom of it. When did your offer go to the seller for signature?
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Old 06-14-2009, 09:47 AM
Status: "Open for work" (set 18 hours ago)
 
Location: Just south of Denver since 1989
11,821 posts, read 34,326,708 times
Reputation: 8940
There is a lot here to question - too bad you can't get your agent on here so we can grill him/her directly.

1. Is this property in MLS? The MLS would show the coop fee the listing brokerage would be willing to pay the selling brokerage. Are there any remarks in the private section to suggest this buyer pays?

2. What type of loan does the seller have Fannie/Freddie/VA/FHA?

3. What does the estimated HUD say about the brokerage fees?

4. What type of loan are you getting? Some won't let you pay the brokerage fee.
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Old 06-14-2009, 12:19 PM
 
1,364 posts, read 1,924,111 times
Reputation: 1111
I recently put in a very fair offer on a property listed by an seller/broker where the seller wanted me to pay all agent fees. I put "seller pays commission' in the contract and he rejected the offer.
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Old 06-14-2009, 03:18 PM
 
57 posts, read 204,859 times
Reputation: 45
Quote:
Originally Posted by 2bindenver View Post
There is a lot here to question - too bad you can't get your agent on here so we can grill him/her directly.

1. Is this property in MLS? The MLS would show the coop fee the listing brokerage would be willing to pay the selling brokerage. Are there any remarks in the private section to suggest this buyer pays?

2. What type of loan does the seller have Fannie/Freddie/VA/FHA?

3. What does the estimated HUD say about the brokerage fees?

4. What type of loan are you getting? Some won't let you pay the brokerage fee.
Ha. Agreed.

1. Property is in MLS, buyer's agent is protected at 2.5%. Listing remarks state buyer must pay 5% fee in addition to approved price.

2. I think the outstanding note was a Fannie re-fi, but I'm not sure.

3. Trying to get our hands on the last estimated HUD.

4. We're going to go with a conventional 30-year, unless anything is noted in the appraisal which would prevent a lender from giving us the funds (it's as-is).

We're just asking for the seller to cover the commission. Since it's a short-sale, I don't think they've got the cash, but perhaps the bank will approve it.
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