I’m finding lenders are getting more and more strict with their ss approvals. Though I think most out there are investors or real estate agents, I’m wondering if anyone else out there is having the same issue as i am having.
I am more of a consultant or aka negotiator. I’ve very successful in what I do however maybe not as good as I thought. I have had 12 approvals in the last 10 days and not one would approve to pay a loss mitigation fee, concessions, hoa dues and even as far as a courier fee. I don’t even charge an outrageous fee (well from what I know others are charging). I’m between 795 and 1500. I’m also find the lenders being very descriptive on their approval letters. Indicating the exact buyer that has been approved - noting that a third party may not take the deed before or after the transaction - the exact purchase price, etc. etc. etc. I know some may think that because I am not a licensed agent that I may deserve nothing - but as I have built a successful business over the years and have many people that rely on my skills, I’m torn. We’ve had some agents willing to pay us a marketing fee, some of the buyers will pay as well - but in all shouldn’t the lenders being paying such a fee. I’m not sure - someone shed some light on this subject please. Maybe there is another way to keep this going and being fare at the same time. :anon
This is a big surprise, especially since your fee is so low. I recently spoke to someone who is also a negotiator in FL and she charges a flat fee of $10,000 for her services. She said the banks have actually been paying her, which I find strange because sometimes they don’t even pay agents that much.
As for the bank indicating that a 3rd party can’t take the deed AFTER the transaction, is there a specific time limit set? Maybe they don’t want the property flipped within 24hours? I’ve never heard of this and hope I don’t come across it…
Please let me know how they are pulling it off - I can’t get it to go through for the life of me. I’ve tried to even put it on the buyer side and every time it was denied. There was not time frame for the 3rd party notation. This was all coming from GMAC. We didn’t even get to counter off anything. They buyer ended up putting in an offer that ended up being a few thousand more than the value and they still cut the broker commissions and loss mitigation fee. I just received the approval and that was that.
Cruzvarian,
I just got a SS approved today and the negotiator from ASC told me that she was going to cut my $4500 (I called it negotiation fees) to $1000. I told her that if my fees are cut then this is a dead deal, and that the bank (ASC) or the lender would lose more than my $4500 fees after our intense conversation she realized that I was seroius. She said ok and approved the deal.
I charge a flat fee $500 on transaction under $500K and $7500 over that amount up to $1mil.
Sometimes you have to get warm and fuzzy and let the negotiator knows that this is your business and that if you don’t get paid you won’t be able to assist clients in completing successful SS and keep a foreclosure off the banks books.
I feel for you, to have 12 approvals and no pay, wow!! thats tough
I’m new to the short sale process, does this scenario affect the “spread” (potential profit) between what the agent can sell the house for and the short sale discount?
Are the loss mitigation fee’s and spread 2 different things?
Forgive me if this sounds like a basic question. I went through foreclosure 2 years ago and wish I would have knew this then :banghead
I’ve actually done melrealtor’s method and it does work. But no doubt, i have run into lenders where they just didn’t care. Plus doing the bank slap method really effects your opportunity to build a relationship with the loss mitigators.
I have never had the great fortune of dealing with the same negotiator twice. Most banks have a retention problem. I hear all these so called Gurus talking about relationship, what relationship. It is near darn impossible to get the same negotiator twice since they have different locations around the nation. Unless the negotiator is a friend of your cousin.
I recently got 2 $5000 fees approved.
Another strategy I use involves reducing the RE commission. If the bank tells me that they are olny paying 6% period, well, guess what the RE agents are getting 5%, most are down right happy to be getting a payday.
In the past I have waited two weeks after a negotiator told me they are going to cut my fees. They apparently couldn’t wait and placed a call to me to see if the buyers were still interested. I told the negotiator that they were out with their realtor looking at other options, because of the fees. I work too hard to relinquish my fees. :beer
Mel - this seems to be very good advice. Sometimes you can use time to your advantage. I believe most investors are so eager to close deals that they are probably calling the bank as soon as they get the information. I like your approach. Thank you for sharing.