Many NJ Realtors or real estate agents in general want to know if a bank can renegotiate short sale commission once an offer has been presented and approved by a bank? If the homeowner’s mortgage loan was Freddie or Fannie Mac insured, short sale commissions can not be renegotiate. You are entitled to earn your full commission per your listing agreement.
However, if there is a second lien holder with a lien on the property i.e. a line of credit, home equity line or a 3rd part collection, the 2nd lien holder can ask the listing broker to take a lesser commission so as to collect more money from the proceeds of the sale. A good example of this would be a collection agency demanding to collect the commission difference of 1%.
Dealing with a second lien holder can be difficult and often frustrating since title can not transfer to new buyer until all existing liens are settled and cleared.
Realtor Beware: Not all sellers can be helped. In addition to what you normally collect in a short sale transaction, considered collecting the seller’s credit report, conducting a judgement/title search and asking the seller to be proactive within the transaction. Sellers that advocate for themselves are twice as likely to close more so than absentee or lackadaisical owners. If you are going to spend 6-13 months processing a short sale transaction, you chances of getting to closing are higher if you are informed, in close contact with the bank and knowledgeable about your market area.
Until Next Time on the Q and A on njretoday.com
Powered by Facebook Comments