Smiling JOe
SoWal Expert
scooterbug44: Isn't that "third party" the one that is actually paying you though? 
SJ: NO, in a short sale, the Realtor's contract is for the seller to pay. The lender is not party to that contract.
I understand all the work that goes into a short sale (Bobby sent me all the info months and months ago to help me understand the process better) and I don't have a problem with them making a rule that the banks can't reduce your agreed upon commission. My problem is with SJ's objection to them capping it at 6% - a reasonable rate IMO as the national average is 5.1%.
If you owned a store, would you want the gov't stepping in to cap your prices on goods? If I owned a Motel 6 and a Ritz Carlton, I should have the right to charge guests more at the Ritz Carlton. My rates are between me and my customers, not me and the bank who holds the note on my business, nor the gov't.
There are some Brokers who offer discounts for doing less work and taking less liability, and they typically charge less for not being full-service, but I don't see any of them doing short sales, because short sales require knowledge and work.
National average? Are you serious? Do you also think that if the national average price paid for green beans is $.69 because Walmart sells so many at discounted prices, that all stores should be limited to selling green beans at the national average? Get for real. I hope your business industry never does that.
If the last couple of years taught us anything (and I doubt it), we know that if there WASN'T a cap we'd have people making deals w/ their friends who were agents to try and work the system, knowing the banks couldn't reduce it. What? There hasn't been a cap, and I if anything, friends typically gave discount rates to their friends, not the opposite.
And I don't think you can solely blame the banks for this mess - yes, they obviously bear the brunt of the blame for making the actual loans, but there were alot of other people who helped it happen - among them appraisers, mortgage brokers, and realtors.
I don't solely blame the banks. I do blame the banks who didn't qualify the people who were borrowing the banks money. I mean, would you loan your own money to a complete stranger who showed you nothing more than their social security number? That is what happened. Realtors cannot sell houses if the lender won't loan the money, and the lenders won't loan if the houses don't appraise. You can blame a lot of people, but the Realtors, as a whole, are likely least at fault. A Realtor's job is to connect willing buyers to willing sellers. If you find a Realtor forcing a person to buy a property, report them to the Feds.
SJ: NO, in a short sale, the Realtor's contract is for the seller to pay. The lender is not party to that contract.
I understand all the work that goes into a short sale (Bobby sent me all the info months and months ago to help me understand the process better) and I don't have a problem with them making a rule that the banks can't reduce your agreed upon commission. My problem is with SJ's objection to them capping it at 6% - a reasonable rate IMO as the national average is 5.1%.
If you owned a store, would you want the gov't stepping in to cap your prices on goods? If I owned a Motel 6 and a Ritz Carlton, I should have the right to charge guests more at the Ritz Carlton. My rates are between me and my customers, not me and the bank who holds the note on my business, nor the gov't.
There are some Brokers who offer discounts for doing less work and taking less liability, and they typically charge less for not being full-service, but I don't see any of them doing short sales, because short sales require knowledge and work.
National average? Are you serious? Do you also think that if the national average price paid for green beans is $.69 because Walmart sells so many at discounted prices, that all stores should be limited to selling green beans at the national average? Get for real. I hope your business industry never does that.
If the last couple of years taught us anything (and I doubt it), we know that if there WASN'T a cap we'd have people making deals w/ their friends who were agents to try and work the system, knowing the banks couldn't reduce it. What? There hasn't been a cap, and I if anything, friends typically gave discount rates to their friends, not the opposite.
And I don't think you can solely blame the banks for this mess - yes, they obviously bear the brunt of the blame for making the actual loans, but there were alot of other people who helped it happen - among them appraisers, mortgage brokers, and realtors.
I don't solely blame the banks. I do blame the banks who didn't qualify the people who were borrowing the banks money. I mean, would you loan your own money to a complete stranger who showed you nothing more than their social security number? That is what happened. Realtors cannot sell houses if the lender won't loan the money, and the lenders won't loan if the houses don't appraise. You can blame a lot of people, but the Realtors, as a whole, are likely least at fault. A Realtor's job is to connect willing buyers to willing sellers. If you find a Realtor forcing a person to buy a property, report them to the Feds.