Posted by Joe on June 14, 2006 at 10:22:27:
If the property is going to foreclosure, then the broker is at risk of getting nothing. I would say that they get treated like a 2nd or 3rd lien holder. You try to give them a little something to make them happy so that they’ll release the listing. But otherwise, they are up a river without a paddle.
Unless you want to maintain a relationship with them after the fact, then you might look at the situation differently. If they consistently send you short sales that you are able to make deals out of, then it might be worthwhile (if the numbers allow for it) to give them a full commission.