Methods to collect Negotiation fees?

Foreclosures, Short Sales, Tax Foreclosures
1

What sort of things are some of you using to collect negotiation fees? I have heard of different ways to add fees on the HUD 1 and also a way to collect by negotiation with the end buyer. Can someone please explain?

thanks

2

If you are looking for the bank to pay a negotiation fee put it on the HUD-1

Can you please rephrase the ? Are you asking how you get paid by the end byer?

3

Re: methods to collect fees on HUD. I don’t my notes with exact numbers but I was recently invited by a Realtor friend to a meeting/forum geared toward agents doing short sales.

The meeting was sponsored by Wells Fargo and the guy that did the presentation was one of the head supv. for loss mitigation, has worked for WF for 15yrs, etc.

He was basically putting out the info on how to correctly submit short sale offers. Most the Realtors in the room were primarily interested in making sure their commissions weren’t cut by the lender.

The main message was when WF (he couldn’t speak for other lenders/servicers) made a decision on a short they have a sale price range between 80-88% of the BPO.

The message was the more “junk” you allow on the HUD as the Realtor the more we are going to cut into your commission. Keep in mind most lenders are really servicers and take their nod from the investor.

This is just one lender’s policy but I would take it to heart and just like a “clean” offer on a property usually gets accepted faster, the more fees there on the HUD the higher probability the offer will get rejected or kicked back.

In addition you may have push back by Realtors who know their fee will be cut if there is too much “fat” in the offer.

So, in my humble opinion, I’d focus on really hammering the BPO. I know it’s difficult to do sometimes with pretty houses, but in my experience that is the biggest bank for your buck and the HUD fees are a bonus.

You can get them paid, but remember the phrase 'pigs get fat, hogs get slaughtered".

Last, get every angle you can and understand the banks are maneuvering for every angle they can. I run into this every day with both short sales and loan mods so know what you are up against.

hope that was helpful