« Why Should You Share Accommodation In Perth? | Home | BP Oil Spill Gives Myrtle Beach Property Management A Boost In Tourism »
Ignore Lender Rules Regarding Short Sale Commissions
By Vic Hurlstorm | September 2, 2010
First and foremost, comment 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 team at Group 46:10
We are going to speak about a commission dispute that we had on a file that was being handled by Bank of America. The backer on the file was HSBC. The folder was rejected regardless of 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 unattractive stuff and they capitalize on it. They are more of an investor in this market out for revenue. They did not necessarily do any loans. So, Kevin officially started dealing with them on July 1st.
Condor Capital reviewed the documents and noted that the commission was at 6%. They asked that we cut the commission to 5%. They actually wanted to make the commissions 5% of their net sales value, which was purchase price excluding the buyers closing expenses. Kevin replied to them telling them that he was not willing to do that. He knew that they liked the offer because they had previously told them it was a fine offer.
Condor Capital replied that their rules just allowed them to give 5% commissions. If Kevin did not accept that decree, they would merely foreclose on the property. This foreclosure suggestion got Kevin a smidgen disturb.
It was apparent that they were out to make more money rather than come across a win-win situation for both parties. Kevin explained that he could get them a poorer offer and accept the lesser commission, but that wouldn’t be a win-win situation for either group. The guidelines they were using weren’t in the best interest of either party. At the end of the day, you have to set up guidelines that help all groups successfully complete deals.
Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona
Topics: foreclosures | No Comments »