06-20-2013, 09:36 AM
OMG3! My initial take on your personal question was that you were prying. My initial reaction was NONYA, but my experience is not unique so I might as well share it. A move is still my intent or should I say a move back. I lived in Hawaii for several years decades ago. Like many, the previous collapse hurt me and delayed my plans. I have mostly recovered or adapted from that experience but now family obligations (being responsible for two 90 year old mothers) has my options restricted. Ohana comes first and foremost. I do have multiple lots there, one of which I plan to build on providing it's meant to happen.
Back to Real Estate which I'll address for general benefit as I think my efforts are wasted on you.
Previously you were talking primarily about REOs which is where most of the prior information was directed. Now I'll specifically address more of the Short Sale part of the commission which is confusing you, which you will also have no influence on as a buyer:
In Florida, just as with a REO, a seller signs a listing agreement with a Realtor signed off by his/her broker with an *'d commission, such as 3%* co-broke (6%* total) and explained in the listing that commission is based on third party approval (lender) and will be split 50/50. It is also designated in the MLS that way too. The listing agreement also contains a short sale addendum agreement. As with REO's, if it's still a fannie, freddie, FHA, or VA and there is ONE loan being shorted, HUD rules and government rules say maximum commission to be paid is 6%. If the person negotiating for the seller is experienced and good, whomever is negotiating for the bank may try to pull a fast one but you just give them the rule number(s) applied to that situation, and once a lender negotiator knows someone representing the seller is knowledgeable, especially one that has CDPE certification, they back off or you go above their head to a supervisor or VP.
However, if there is a second or third loan involved in being negotiated for that same sale, ALL lenders have to agree to the short sale and you normally can't get the second and/or third lender to say yes until the loan in first position says yes. At that point, the second and/or third lender may say they'll agree to the short sale but only if the commission is dropped a percentage point, here to 5%. Or, in a worst case scenario, all lenders say yes to the max commission, but the investor holding any of the 2nd or 3rd notes (the investors who bought the note from the lender) or the mortgage insurance company, and typically it's the MI company if one is involved, will have the final say and sometimes, will cut the commission a percentage point. Thus to a total of 5%. If the listing agent has both sides the lenders may try to get a drop to 4% but I've never seen it actually happen.
As a short sale buyer you must also have PATIENCE. It can be a rather long wait period. Also make sure the person negotiating the short sale for the seller has experience doing them. If not, the property may end up foreclosing and you've lost the property.
Pua`a
S. FL
Big Islander to be.
Back to Real Estate which I'll address for general benefit as I think my efforts are wasted on you.
Previously you were talking primarily about REOs which is where most of the prior information was directed. Now I'll specifically address more of the Short Sale part of the commission which is confusing you, which you will also have no influence on as a buyer:
In Florida, just as with a REO, a seller signs a listing agreement with a Realtor signed off by his/her broker with an *'d commission, such as 3%* co-broke (6%* total) and explained in the listing that commission is based on third party approval (lender) and will be split 50/50. It is also designated in the MLS that way too. The listing agreement also contains a short sale addendum agreement. As with REO's, if it's still a fannie, freddie, FHA, or VA and there is ONE loan being shorted, HUD rules and government rules say maximum commission to be paid is 6%. If the person negotiating for the seller is experienced and good, whomever is negotiating for the bank may try to pull a fast one but you just give them the rule number(s) applied to that situation, and once a lender negotiator knows someone representing the seller is knowledgeable, especially one that has CDPE certification, they back off or you go above their head to a supervisor or VP.
However, if there is a second or third loan involved in being negotiated for that same sale, ALL lenders have to agree to the short sale and you normally can't get the second and/or third lender to say yes until the loan in first position says yes. At that point, the second and/or third lender may say they'll agree to the short sale but only if the commission is dropped a percentage point, here to 5%. Or, in a worst case scenario, all lenders say yes to the max commission, but the investor holding any of the 2nd or 3rd notes (the investors who bought the note from the lender) or the mortgage insurance company, and typically it's the MI company if one is involved, will have the final say and sometimes, will cut the commission a percentage point. Thus to a total of 5%. If the listing agent has both sides the lenders may try to get a drop to 4% but I've never seen it actually happen.
As a short sale buyer you must also have PATIENCE. It can be a rather long wait period. Also make sure the person negotiating the short sale for the seller has experience doing them. If not, the property may end up foreclosing and you've lost the property.
Pua`a
S. FL
Big Islander to be.
Pua`a
S. FL
Big Islander to be.
S. FL
Big Islander to be.