The Bank does not want to pay the commission on the short sale

By
Real Estate Broker/Owner with Regal Realty of the Treasure Coast LLC

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:-

What is a short sale?

Can you short sale a house without approval of the 2nd mortgage?

Who pays the real estate commission on a short sale?  

 

Posted by

 

 

I am  certified from the National Association of Realtors for being a Short Sale and Foreclosure Expert. 

If your are looking to sell or purchase a home in South Florida CLICK HERE to contact me to assist you with your real estate needs.

 

                              

  

Merline Pennant

Realtor/Broker

Direct Line: (772) 985-7653

email: Merline@RegalRealtyTC.com

Website: RegalRealtyTC.com

 

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Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Merline.  I commend you for working the Short Sales!  I refer them out to other Brokers here in Tallahassee. 

Nov 19, 2013 12:02 PM #1
Rainer
121,969
Merline D Pennant - New homes, Short Sales and Pre-foreclosures
Regal Realty of the Treasure Coast LLC - Port St Lucie, FL
New City, New Towns, New homes

Let me know Fred if I can help you are any time.

Nov 19, 2013 10:47 PM #2
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Rainer
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Merline D Pennant - New homes, Short Sales and Pre-foreclosures

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