Short Sale Realtor Question - Posted by dale-Ohio

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.

Short Sale Realtor Question - Posted by dale-Ohio

Posted by dale-Ohio on June 13, 2006 at 17:27:49:

if a realtor has a listing and its on its way to the foreclosure route or close to foreclosure. then if the Realtor gives me the short sale or contacts the bank on my and the owners behalf. Does the bank allow her commision? And if they do. then how much? 3% or 6%.

Reason is, that a few realtors have approched me with a few short sales that will very soon go to auction or are a few payents behind. I am wondeering how they are getting there cut from the bank or does the bank allow this? thanks

Re: Short Sale Realtor Question - Posted by BTI

Posted by BTI on June 14, 2006 at 11:23:58:


Back when I was an active broker, I held out for the six percent. I had a few lenders try to cut the commission, especially if I was the only agent envolved, but I always asked them do you want to pay my fee now, or later, after your stuck with the property and it’s costing you more money.

Also, how much loan business did they get from my company after being unreasonalble, it was usually worth their while not to cut my fees, that said of course my clients interest came first but a full commission allowed me to pay high prices for some of my clients personal effects when they were moving out.


Re: Short Sale Realtor Question - Posted by NJDave

Posted by NJDave on June 14, 2006 at 06:51:32:

In my experience, when a mortgagee dictates terms for short sale approval, permitted disbursement from sale proceeds oftentimes restrict payment of the real estate broker’s commission which, in my opinion, unjustifiably punishes the broker. I’ve seen 6% reduced to 2%, 3%, or 4%.

The broker must then agree to accept less from the Seller than what was stated in the listing contract…