We are experiencing a lot of short sales in Indianapolis and agents all around are getting hit for reduction in commissions. Currently the local board is putting the commissions back on the listing agent/broker - if the bank reduces the commissions at closing the listing agent/broker can be brought up to arbitration for the remaining commission.
I was on a conference call and it was described that banks don't care about the listing contract commission. Hey have no financial responsibility because the listing agreement was sign by the sellers who are already in tough financial situations and are not attachable for the missing commissions.
The tough part of these short sales are that the rules for our MLS because they were set up for sellers that had equity in a home therefore the commission could and would be guarantee. Right now the rules having the brokers go after each other with no ability to get the money back from the sellers.
Any thoughts on how to deal with these issues?
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