Bank Rules Are Ludicrous
Everybody’s favorite day on the Short Sale Power Hour is F’ed up Friday. It gives the boys at Group 4610 the chance to communicate an unforgettable moment in their short sale careers that might or may not be a learning experience for the rest of you.
This week, Fred takes us back to a moment when he was putting a short sale together with Ray at EMC Mortgage. Fred and Ray were working on file that was ideal. By flawless file, we are referring to the offer and the BPO were the exact same amount. Both were priced at $315,000. Fred knew the offer and he knew the BPO because he did his research. Ray accepted the agreement. However, he said that EMC would only pay 5 percent commission since it was a luxury home.
Here is where it gets a little wild. Fred got a little tough with his good friend Ray. It is worth noting that Fred doesn’t suggest delivering this method like he did. However, the philosophy he used is well worth your deliberation. Here is what Fred did.
Fred contacted EMC Mortgage and Ray and decided that he would go back to the buyer and tell them to lower their offer price by about 5 percent. That would sacrifice the bank about $15,000. Fred knew a couple things before he mentioned this. First of all, he knew what the BPO was and he also knew that an offer which was 95% of the BPO would get acknowledged. Ray didn’t like it, but when Fred offered it to Ray’s supervisor, the original deal was approved.
From that point forward, Ray would not work with Fred. Fred believed that he did a fair job with getting the bank a full price proposal. Nonetheless, the bank was still not giving a 6% commission.
This is precisely why rules are absurd. The banks absolutely ignore their own guidelines when the money makes sense.
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