Getting paid...

We have focused our attention on homeowners facing foreclosure, and setting up an appointment with the realtor. Our thought was if we had the buyer pay us a $2,500 finder’s fee, which would be put on the HUD 1 form, the short sale could still go through without affecting the numbers worked out between the parties. The buyer would understand going into the deal that there is a fee that must be paid.

The realtor says he cannot do that because we are not licensed as real estate agents and I would have to be on his payroll in order for him to pay me. Is he really paying me, since it is understood where the money is coming from?

Or could the buyer write a check for the finders fee and not even go through escrow?

Any advice and options would be much appreciated!

The Realtors Right. Use the search button up at the top. I know we have discussed just about every single way one can be paid on a short sale. Most of these methods come with detailed examples on how to structure as short sale so the non licensed negotiator can get paid.

Read! Read! Read!

GooD LucK! :beer

I’m paid a loss mitigation fee which is reflected on the HUD under line 506. Haven’t run across a lender yet that wouldn’t pay it. I always say I am processing for the Agent and it’s been fine. You definitely cannot define your fee as a finders fee. It needs to be a consultation fee or loss mitigation fee - the loss mitigation fee seems to be the best wording to use.

Yes you can be paid a consulting fee on the HUD. We put ours in the line 1300’s. We also put an admin-doc prep charge. The reason we do this is because we are negotiating the short sale.

My question to you is, what is your finders fee for? Is it for finding a property for the buyer which was already on MLS and listed with a realtor? Are you actively negotiating?

What exactly are you doing in this transaction? Negotiating the short sale for the agent? If so, you can be added to the HUD as a negotiating or consulting fee, as long as the buyer is willing to pay for it.

Has anyone run into the problem where the banks will only pay a commision or a Loss Mitigation Fee, not both?

The big banks/servicers will usually call you out on it if you have full commissions and a hefty loss mit fee on the HUD. The smaller banks usually don’t even notice the consulting fee! I put a loss mit fee of $1895 and a doc prep admin charge of $895 on every HUD. If they ask I explain what it is. Sometimes they go for it, sometimes they don’t.