Ignore Lender Policies Concerning Short Sale Commissions
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We are going to chat about a commission dispute that we had on a folder that was being handled by Bank of America. The investor on the file was HSBC. The file was rejected regardless of the offer being the same as the BPO. We came to find out that they sold the mortgage to Condor Capital.
Condor Capital is an asset management group that sells REOs and buys ugly stuff and they capitalize on it. They are more of an investor in this market out for revenue. They didn’t necessarily do any loans. So, Kevin officially began working with them on July 1st.
Condor Capital reviewed the documents and noted that the commission was at 6%. They asked that we decrease the commission to 5%. They really sought to make the commissions 5% of their net sales value, which was purchase price less the buyers closing expenses. Kevin responded to them telling them that he was not willing to do that. He knew that they liked the offer because they had previously told them it was a fine proposal.
Condor Capital replied that their rules simply allowed them to give 5% commissions. If Kevin didn’t accept that rule, they would simply foreclose on the house. This foreclosure idea got Kevin a tad disturb.
It was apparent that they were out to make more money rather than come across a win-win situation for both parties. Kevin explained that he could get them a lower offer and accept the lower commission, but that wouldn’t be a win-win position for either party. The policies they were utilizing weren’t in the best interest of either team. At the end of the day, you have to set up policies that help all entities effectively complete deals.
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