In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Wednesday, March 31, 2010

Jim the Realtor on Short Sales: "Rampant Fraud and Deceit"

by Calculated Risk on 3/31/2010 10:40:00 PM

First: the buyer should find out if it is a HAFA short sale (starts April 5th). If so, the "negotiator fee" must be disclosed and be part of the agent's fee (total agent fee not to exceed 6%). From HAFA:

The amount of the real estate commission that may be paid, not to exceed 6% of the contract sales price, and notification if any portion of the commission must be paid to a contractor of the servicer that has been retained to assist the listing broker with the transaction.
As an aside, if the homeowner or buyer is an agent, they are not eligible for any commission.
Any commission that would otherwise be paid to you or the buyer must be reduced from the commission due on sale.
Second: as part of a HAFA short sale, the lender(s) must agree not to pursue a deficiency. If the lender balks on a short sale - I'd ask them about HAFA.

Third: Where are the regulators? Jim the Realtor is talking about rampant fraud in San Diego. Hello? Is anybody listening?
"There is rampant fraud and deceit being imposed by Realtors throughout the county. It's embarrassing."