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The fee associated with a short sale negotiator is considered a sales concession?

By
Mortgage and Lending with Guild Mortgage Company

More and more we are seeing on a conventional purchase that the property seller is using a negotiator to reduce their balance owed to the bank. If a short sale negotiator handles this they will have a fee associated with this service.

Some property buyers have agreed to pay for this fee. This expense is not considered a customary charge therefore it will be treated as a sales concession.  It is important to know this as the amount of determined sales concession will reduce the sales price or value of the property from an underwriting perspective.  

 

Heather Burns

Home Mortgage Consultant

Guild Mortgage Company

425-945-8035 Office

206-714-3522 Cell

206-577-2901 Efax

hburns@guildmortgage.net

 

Apply Online: http://www.guildmortgage.net/heatherburns

 

Follow me on Twitter: http://twitter.com/urownlo

 

 

 

Comments (4)

Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Thanks for the heads up on this Heather.

Aug 17, 2010 08:36 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Interesting info.  Very often this fee ca be negotiated, especially if the negotiators are also the title company handling the closing.

Aug 18, 2010 02:27 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Heather, always these middlemen pop up. Reminds me of those that will protest your property taxes for you. Always selling expertise and saving people time and hassle.

Aug 18, 2010 04:28 AM
Sandy Noll
(RSVP Real Estate) 425.890.0878 - Gig Harbor, WA
RE Pro Serving Snohomish to Thurston Counties

Thanks for the reminder on this Heather.  With things chaning constantly it's hard to keep up with what is allowable and how much, etc.....  Keep the info coming.

Oct 03, 2010 08:40 AM