There is a short sale listing in MLS -- no mention of a negotiator.
When an offer is written on the property, all of a sudden, the listing agent does not respond, but the negotiator responds. The contract goes back and forth -- the buyer and seller come to terms subject to the bank's approval. Selling agent and listing agent have not spoken at all.
Then,the negotiator deals with the bank and get an approval for the contract. Then, there is a paper that the negotiator needs for the buyer to sign in order for his contract to be accepted by the bank -- this paper is an agreement that the buyer will pay the negotiator 1.5% of the contract price -- this will not be on the HUD statement, but will be paid at the end of the closing by the buyer to the negotiator.
What!!!!!!!!!!!!!!!!!!!
I would like your opinions.
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My old standby still applies here.... "if it's not on the HUD, it's not happening!"
Liz - I like Kathy's expression "if it's not on the HUD, it's not happening!" Where the heck is the listing agent during this whole process?
Kathy ---- my thoughts,too -- seems like to me if it is not on the HUD, then it's fraud.
[an agreement that the buyer will pay the negotiator 1.5% of the contract price -- this will not be on the HUD statement]
Sounds like fraud to me and my buyer is not signing that in a million years.
Liz: UNACCEPTABLE. This is ridiculous. If it's not on the HUD, then this guy isn't getting paid. Should have secured his own payment from the seller that hired him. This is a total crock.
Are people still doing stuff like this !!!! I am with the commentor above. If it isnt on the HUD it doesnt happen
All monies....to all parties should be on the HUD-1. Even if it is for a negotiator fee! Wasn't the fee disclosed in writing somewhere....
So the listing agent plunks a for sale sign into the ground, data enters the listing into the MLS and then what? Is the listing agent doing anything at all besides that? At the very least, this should have been disclosed up front in the MLS agent remarks.
Are you kidding - this yells fraud. Who in heavens name thinks that will fly...........crazy! I also get the listig agent has no clue as to how to deal with shorts.
Liz, this smells like three day old fish to me!
Where the heck is the listing agent on this one, if it isn't in the listing and isn't on the HUD, then tell them to take a hike! This wasn't park of the original contract and you aren't going to be a part of it.
Sounds like the listing agent is getting paid to simply put the sign in the yard and enter it into the MLS. First, the fee should have been disclosed up front. Second, it needs to be on the HUD-1.
Something isn't right here. Sounds like a company here in town that wanted the agent to pay back $X for the short sale listing lead.
Not on the HUD? Not in the deal. Period.
In California everything needs to be disclosed up front. This would not fly!
Judy ---- thanks so much for stopping by -- I agree with you & Kathy.
Candice --- thanks so much for your opinion -- just makes me realize that I'm not crazy.
Chris Ann ---- tell me how you really feel :) LOL -- Guess I just wanted support on my feelings on this.
Charlie ---- thanks for stopping by -- yes, this negotiator acts like we are crazy.
Stephen---- no, this fee was not disclosed until the contract was accepted by the bank.
Cynthia ---- I agree -- what has the listing agent done? I also agree that this should have been disclosed in the MLS remarks and then it would still need to be on the HUD.
Anna ---- thanks for stopping by -- love your comments -- I agree that the listing agent has no clue about shorts.
Pat ---- thanks for stopping by -- yep, and 3 day old fish smells pretty bad.
Arlene & George ---- thanks for stopping by -- we are definitely on the same page.
Kim ---- thanks for stopping by --- great comments -- yep, this is actually going on right now in the JD office.
Carol ---- so nice to see you -- have been missing you ---- I agree not on the HUD, not in the deal.
Melissa ---- I cannot imagine that this would fly in any state -- it appears to me to be mortgage fraud any way you look at it. Thanks so much for stopping by.
Yes, I have heard of agents hiring third-party negotiators who then try to charge the buyer. Ain't gonna happen on my deals. Even if the fee went on the HUD, my buyer ain't gonna pay it. There is a company soliciting agents right now. And get this, they talk the agents into paying them monthly for the leads they provide AND they expect the agent to get the buyer to pay them. They probably don't even have a real estate license and therefore cannot legally collect a fee anyway. I'd report them to the FBI.
I am with everyone else here - what a sham!! And I don't mean a Sham-Wow!
Liz, this is wrong on so many levels. Mortgage fraud if it's not on the HUD-1, and the very gray area of what right does a 3rd party negotiator without a real estate license and not the listing agent have to be negotiating anything? Is it illegal pracice of law? I know there are many people doing it and some do it better than Realtors or attorneys, but I'm just not sure how it would play out in court. We negotiate our own. I've been burned twice by those 3rd party negotiators when representing the buyer.
Elizabeth ---- we told the negotiator that the buyer was not paying him any fees, because it had not been disclosed up front. Thanks so much for your great comments.
Dawn ---- thanks so much for stopping and for your great comment -- I love it -- "don't mean a Sham-Wow"
Sharon & Frank ---- thanks so much for stopping by and for your awesome comments -- the selling agent notified the negotiator that the buyers are not willing to pay him anything -- we have not heard a word back from him -- we are waiting.
Glad to read that everyone seems to agree on this one. Stand your ground because you are absolutely right!
The things people will try is unbelievable!
Irene ---- there is more to this soap opera -- will post about it later.
Just what does this "negotiator" think they can try to get away with? I'm looking forward to reading your next post on this Fraud.
Mama Liz,
There is an old saying out there, "Put you head on the chopping block and it will get cut off"
Each time you touch a short sale, listing or buying, you better have legal counsel walking along with you...
I feel these transactions will begin to haunt us, Realtors, more, once certain bailout plans go into effect...
However, the fraud aspect of short sales scare me...Remember when times are bad, most cons and scams come out of the woodwork looking to make a buck...
Take time to investigate all parties involved..."Tread softly and carry a big stick" when you deal with a short sale....and as Forrest Gump would say, "And that's all I have to say about that."
Thanks for keeping us informed....
Carl
Liz- There are many short sale companies that charge up front fees to negotiate for sellers. So do attorneys. Now those fees are not on the HUD, so does that mean that is fraud? I don't think so. Attorneys never have to disclose the fees that the buyers and sellers are charged on the HUD unless they pertain to a particular closing fee.
There are short sale lenders who also charge fees just to touch a short sale file but that is not constitute fraud per se. Katerina