I see this quite often. I get realtors listing their own short sale properties. As I understand it, they cannot receive a listing agent commission due to the home being in foreclosure and upside down. Is this correct? Are their any lenders allowing this? Do I just submit the offer with their commissions anyway? How should this be handled?
If the borrower is a realtor trying to complete a short sale commissions are a little more complicated. No realtor commissions are paid if the realtor is a relative (last name or the agent accidently slipping up and stating this) or spouse to borrower or if it’s an agent out of the same agency (or their broker). I have the argument all the time that it’s the broker working the sale and not the borrower, but there is no guarantee that the money won’t go back to the person trying to short the loan so only 2.5 (or 3% if feeling very generous) will go to the buyers agent.
That’s what I thought. So maybe another agent should list the house outside of his brokerage? Or just leave him with the listing and not include him on the HUD.
This is a different scenario. What if the realtor is not on the loan but on title?
The realtor/seller should list the property with his/her broker. If the realtor is a close relative of the seller, they are still entitled to a commission. If realtor is on title, the bank will not pay a commission.
It’s all in how you write up the HUD-1. Negotiation or packaging fee is a legitimate fee that banks will pay.