Comments on: More Short-Sale Negotiations

By: Jessie Crichton

Jessie Crichton — Wed, 06 Jan 2010 16:59:02 +0000

Seriously, there’s a lot of people here who really need to get a grip. First of all, there are no “unearned fees” happening here. If you have tried to negotiate short sales, and also provide meaningful real estate services at the same time, you’ll find it’s 2 jobs, deserving 2 paychecks. There are hacks, but there are very good, and not so mystical negotiators out there who secure a near impossible deal for the buyer, and save the seller from foreclosure. There’s value. Pay the man.

Next, because of the way banks look at their short sale process and their guidelines they will NOT pay a short sale negotiation fee – BUT they WILL pay 3% to the buyer for closing costs. Very simple. It doesn’t have to be a hit for the buyer – and btw – creative thinking, in unusual times where there is nothing “fair” about the way consumers are being foreclosed on so that banks can prosper does not constitute any type of licensee fraud – it’s a service. Come on folks – get your head out of the sand and smell the customer service.

By: Jason

Jason — Mon, 16 Nov 2009 19:58:17 +0000

I walked partially in response to a 1 point short sale negotiation fee. Seems like a way for the agent to get you to pay someone to do their job.

By: Irene

Irene — Sun, 15 Nov 2009 03:26:29 +0000

If you live in the San Diego area and you read this blog, you already know that Jim is knowledgable and honest… not to mention hilarious. Why would you even think of getting into a transaction without this kind of representation? It makes sense to protect your interests with someone who is also looking out for you.Unfortunately ,I live in Northern Ca, otherwise I would be applying for a job with a brokerage that has some ethics and integrity. Not an easy thing to find in this industry

By: DESERT REALTOR

DESERT REALTOR — Sat, 14 Nov 2009 21:58:50 +0000

True Greed Story: While assisting and training new agents, a branch manager of a big box company routinely took kick-backs from manager-recommended mortgage brokers processing loans for the new agent’s buyers. However, one new very sharp agent found out and the hammer came down. Bye, bye highroller manager.

By: Jim the Realtor

Jim the Realtor — Sat, 14 Nov 2009 21:06:11 +0000

It’s this type of small thinking that agents dwell on – they are insistent on choosing their own preferred title and escrow favorites, and when they don’t get what they want, they’ll risk blowing a deal over it.

Banks have already gamed the new AB 957, the new law (generated by bozos like the agent mentioned above) to give buyers the power to choose the title and escrow service providers, which are really the buyers’ agent’s favorites.

B of A and Union Bank said fine, but if the buyers choose, then they have to pay both buyer and seller sides (it’s negotiable).

By: Jim the Realtor

Jim the Realtor — Sat, 14 Nov 2009 21:00:22 +0000

I have another one where the buyer’s lender wouldn’t allow for the escrow company to be owned by the listing broker. We found out about 10 days into the deal, so not a whole lot of work was done yet by the escrow company.

The listing agent was a rank amateur (though long-time agent) who seized the opportunity to conspire with the escrow officer to charge the full escrow fee to cancel and move to an independent escrow company. The mortgage broker felt bad and paid for it, but an blatant RESPA violation for charging fees that were unearned.

By: Kingside

Kingside — Sat, 14 Nov 2009 20:51:54 +0000

Relying on government to enforce the rules has always been a bit like watching paint dry. Many times, however, private action can more effectively accomplish the goal in the right situation, especially where consumer statutes exist to incentivize private rights of action. The remedies for individual plaintiffs in RESPA’s anti-kickback provisions and unearned fees is one of those statutes. For instance, the Busby v. JRHBW Realty case in April that resulted in establishing that Realtor “Administrative Brokerage Commissions” (ABC Fees) were illegal under RESPA was brought to court and ultimate judgment by a private litigant.

It takes more than just attorneys who are willing to take these cases though; it also takes committed private parties who are willing to get involved and actively pursue the issues.

By: DESERT REALTOR

DESERT REALTOR — Sat, 14 Nov 2009 20:51:36 +0000

JtR, you are so right. Sometimes justice is slow, however there was some good news – the DA filed charges against the homeowner that stripped the house of expensive fixtures. The FBI, IRS, and Atty Gen task forces are working overtime. The DA may be a better first contact -especially in househippies case. If she has the facts, extortion is definitely an egregious crime.

By: Jim the Realtor

Jim the Realtor — Sat, 14 Nov 2009 20:26:50 +0000

Though I’m ready to go gangbusters in pursuing it, don’t get your hopes up about bringing justice to the real estate world.

The reason the fraud is so rampant is because there is virtually no enforcement of existing laws or rules.

The Lopez brother who admitted to bilking homebuyers for $1M in commissions was out of jail in seven months.

I sent in to the local FBI office the complete case history of she-who-shall-not-be-named, a realtor who cost lenders (taxpayers) over $4 million, yet not only is she walking around free, she is still an active realtor who has an elected position on the board!

Send in a complaint to the California Department of Real Estate? They’re 18 months behind.

By: DESERT REALTOR

DESERT REALTOR — Sat, 14 Nov 2009 19:47:05 +0000

Househippie, whatever is going on is suspiciously fraudulent and reeks of extortion. Double escrows are not always transparent to the homebuying public. Sometimes Sellers are involved as well. Keep extensive notes. Close the sale, then file complaint with DRE. First it was the loan modification scams, now the SSN scams. Its just a matter time until the hammer comes down.