For those potential home buyers who keep hearing about the short-sale negotiator, here is a copy of a contract that was required to be signed in order to make an offer on a short-sale listing:
The contract attempts to justify why the buyer has to pay 1% of the sales price to the SS negotiator. These have become so common that they are like the booties – agents don’t think for a minute how this agreement might impact the sale, they just do it because everyone else is too. It is a way for the listing agents to sluff off some of the workload, and make the buyers pay for it.
Here are a couple of lowlights from the contract:
Because of Processor’s negotiation with Seller’s mortgage company(s), Buyer has opportunity to purchase Property at or below market value and the terms of the Buyer’s offer, including sales price, would not be possible without Processor’s administrative work and negotiation on behalf of Seller(s) and Buyer(s).
Buyer(s) involved agrees to hold Processor, Seller(s) and any and all real estate agent(s)in the purchase of the property harmless and keep them exonerated from all loss, damage, liability or expense occasioned or claimed by reason of acts or neglects of the Processor or mortgage, employees paid by Processor for the purpose of negotiating a short sale or discounted mortgage payoff on the subject Property.
Regardless how you might feel about such an agreement, if you want to make an offer, you gotta sign on the dotted line.