short sales (negotiations, agent, commission, contract)

[jralcantara]

i am about to close a deal and the listing agent wants me to pay from my commision $1500.00 to pay 2nd loan. it this true or what

[2bindenver]

true if you want it to be.

[DowntownVentura]

You are the buyer's agent?

Sounds like there is a second and the holder of the 1st offered the holder of the 2nd $1500 less than the 2nd wanted. (could have been $3000 less and the listing agent is willing to kick in half if you are).

This stuff is done all the time. The question you have to ask yourself is whether it is worth $1500 to close the deal. When it gets this close, it is likely to close no matter what you do. Somebody will kick in the cash. How about the buyer? Does he even know there is a discrepancy? Maybe he will cover it. Maybe you shoud kick in the $1500 to get it closed. Your decision.

[loss.mitigation]

Originally Posted by jralcantara

i am about to close a deal and the listing agent wants me to pay from my commision $1500.00 to pay 2nd loan. it this true or what

I would not recommend it ; it will undermine your integrity and if the lenders
or investors ever find out, your short sales will be rescinded.
The investor and lender retains the right even after closing to scrutinize the
short sale for any intent to commit fraud.

Trust me in the light of all this scheme, a couple of hundred or thousand dollars
is not worth losing your reputation or end up in a predicament.
I know it's real difficult out there and when we're desperate we do thing crazy
things, find a better way and you will sleep better at night, you can do it ...!

[isellnoco]

Hopefully the listing agent is in contact with the negotiator. I wouldn't pay $1,500 for the 2nd lien in the 11th hour. Look at the title work and look at the HUD. Was the 2nd lien holder paid? Did you see the approval letter? Did the bank approve $1,500 going to the 2nd lien? Was the 2nd lien listed on the HUD at all? How is it reflected on the HUD? You need a few more answers before just giving up your commission, just my thought anyway! Ask to see the approval letter, the HUD and start getting clarity. Good luck!

[CloudyDaysForever]

You should take the time to properly capitalize and reread what you write. What if a person you were representing came here and recognized you?

This sounds like some under the table dealing to me. If they're under contract, I'd tell them to figure it out themselves.

[Norsky1]

During our short sale negotiations, the listing agent actually took 1,200 out of her commission to help pay off the 2nd lien, not our buying agent though.

[rjrcm]

Originally Posted by loss.mitigation

I would not recommend it ; it will undermine your integrity and if the lenders
or investors ever find out, your short sales will be rescinded.
The investor and lender retains the right even after closing to scrutinize the
short sale for any intent to commit fraud.

Trust me in the light of all this scheme, a couple of hundred or thousand dollars
is not worth losing your reputation or end up in a predicament.
I know it's real difficult out there and when we're desperate we do thing crazy
things, find a better way and you will sleep better at night, you can do it ...!

Huh? Where's the fraud here? Someone has to come up with the money to pay off the 2nd. Why can't it come from agent commission if they decide to do it? More than likely it's the lender asking the listing agent for commission reduction to fund it.

[loss.mitigation]

Originally Posted by rjrcm

Huh? Where's the fraud here? Someone has to come up with the money to pay off the 2nd. Why can't it come from agent commission if they decide to do it? More than likely it's the lender asking the listing agent for commission reduction to fund it.

It's a violation of the investor's guidelines which has already been stipulated
by the investor what the 2nd lien holder will get at day of closing.

If the investor finds out that the 2nd received more than what was stated in
the approval letter; short sale may be subject to rescindal.

I'm just spelling out the rules for you................

[Norsky1]

It has to come from somewhere to satisfy the lien. It is either the buyer, or the agents that split the commission which they can use thier commission money how they choose. loss.mitigation, do you actually work for a mitigation company or are you just on here spewing incorrect information around?