Saxon Mortgage Short Sale Approval Terms

5% is the norm, and if you are dual agent, it is only 4%.

I had almost the same exact thing with HomEQ. After months of negotiations, I got a call one morning that they accepted the offer, and were giving us 15 days to close escrow. It took almost a week to get the demand letter from them, this was all done verbally.

As we got closer and realized we only needed a few more days, we were told they would penalize both agents $1500 for every 3 days that we are over. A new demand letter stated this in wrirting. We hustled and got it closed on the last day of the month, exactly 15 days, and it was FHA too! This was last year tho

My latest SS was with Wells Fargo and they were great to work with. Gave us 3 extensions with no problems, no more demands.

I had a lender suggest to cut the Realtor commission. I mwrote back that the Realtor commission is non-negotiable. This happened a few times and I always responded the same. The commission was never cut.

Here's a discussion I'm holding in reserve.... Help me to understand.... I'm representing you out here in the field, working hard to bring you the very best deal I can, minimizing your losses. So why would you want to try to cut my compensation? What signal are you trying to send to me? I would think that, in your position, you should be throwing your full support behind me and certainly not be suggesting cutting my compensation. I've only put in for 6% from which I compensate the buyer's agent and share with my broker. This seems to be a minimal cost for the deal that I've put together for you, saving your investors thousands of dollars by avoiding foreclosure.

Just a thought...

Ray•the•Realtor

FYI: FHA ruling is 6% on FHA loans ---- I share this with all the lenders.

Peggy O'Neill RENO,NV

Good point. Does this carry over to Fannie Mae and Freddy Mac?

Ray•the•Realtor

Hi Ray,

Thanks for sharing the compensation discussion. Great job!

I understood that to be only with Fannie Mae and Freddie Mac loans

No - if you call your local HUD office they will provide you with docs showing many of their rules and confirm - I use this info to neg. comm Peggy

Fannie Mae is required to give 6% commissions - So, far I have not seen the same restiction on Freddie Mac - but, that is coming with the new MakingHomeAffordable short sale guidelines. FHA also pays 6%

Rick36, here is the irony. The lenders gudelines for short sales require that the seller market the property to get the highest offer and some require that they list with an agent. Now how can they come back after you, the listing agent did your job, provided them with an approval offer, then tell you that the buyer must close in 30 days when it's the buyer's lender that delays the closing. My suggestion is to fight any further reduction and simply tell them to extend under same terms or to cancel the short sale and foreclosure. And then pay the REO listing agent 6%. Also tell them it's no different when you've had a buyer walk after the approval and then you find a new buyer 2 months later