Jul 26 2010
Disregard Lender Guidelines About Short Sale Commissions
First and foremost, remark on today’s video at shortsalepowerhour.com and you will have the chance to be entered into a drawing for free flip flops from the boys at Group 46:10
We are going to talk concerning a commission disagreement that we had on a file that was being handled by Bank of America. The investor on the folder was HSBC. The folder was rejected despite the offer being the same as the BPO. We came to find out that they sold the loan to Condor Capital.
Condor Capital is an asset management business that sells REOs and buys ugly stuff and they capitalize on it. They are more of an investor in this market out for profit. They did not necessarily do any loans. So, Kevin formally began working with them on July 1st.
Condor Capital reviewed the documents and noted that the commission was at 6%. They asked that we reduce the commission to 5%. They really sought to make the commissions 5% of their net sales value, which was purchase price excluding the buyers closing costs. Kevin replied to them informing them that he was not prepared to do that. He knew that they liked the proposal because they had previously told them it was a excellent proposal.
Condor Capital replied that their rules just allowed them to give 5% commissions. If Kevin didn’t accept that decree, they would simply foreclose on the house. This foreclosure thought got Kevin a bit upset.
It was clear that they were out to make more money rather than discover a win-win situation for both groups. Kevin explained that he can get them a lower bid and accept the inferior commission, but that wouldn’t be a win-win position for either party. The guidelines they were utilizing were not in the best interest of either group. At the end of the day, you have to set up policies that help all parties effectively close deals.
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