The Bank does not want to pay the commission on the short sale
This does not happen too often where the one of the lien holders does not which to pay the real estate commission. However, it does happen on occasions where the bank does not want to pay the real estate commission.
I have yet to come across a 1st mortgage lien holder where they have been opposed to paying the real estate commission, but I have experienced it with juinor lien holders in 2nd and 3rd position.
This is a dilemimar for the agent conducting the negotiations because as eveyone knows agents are not paid until everything is signed and money changes hands.
I have yet to come accross a first mortgage bank that did not want to pay the commissions on a short sale but I have come accross it on a few occasions where there was a 2nd mortgage.
In order to overcome this, one must remember that the 1st mortgage holder has senior position and "authority" over all other lien holders. When faced with this situation I go back to the first mortgage holder and inform them that the 2nd mortgage does not want the real estate commission paid or wants to reduce the fee so that they can net a larger sum.
The 1st mortgage replies that it is either contray to their short sale approval, or that any additional monies available are to be given to them the senior lien holder and no one else. The 2nd mortgage can not generate additional funds for themselves that is contrary to the first mortgage approval or guidelines.
First mortgage holders on the whole apreciate the efforts of the Realtor conducting the transaction and believes they should be paid a fair commission.
Check out some of my other blogs:-
Can you short sale a house without approval of the 2nd mortgage?
Who pays the real estate commission on a short sale?
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