Many NJ Realtors or real estate agents in general want to know if a bank can renegotiate short sale commission once an offer has been presented and approved by a bank? If the homeowner’s mortgage loan was Freddie or Fannie Mac insured, short sale commissions can not be renegotiate. You are entitled to earn your full commission per your listing agreement.
However, if there is a second lien holder with a lien on the property i.e. a line of credit, home equity line or a 3rd part collection, the 2nd lien holder can ask the listing broker to take a lesser commission so as to collect more money from the proceeds of the sale. A good example of this would be a collection agency demanding to collect the commission difference of 1%.
Dealing with a second lien holder can be difficult and often frustrating since title can not transfer to new buyer until all existing liens are settled and cleared.
Realtor Beware: Not all sellers can be helped. In addition to what you normally collect in a short sale transaction, considered collecting the seller’s credit report, conducting a judgement/title search and asking the seller to be proactive within the transaction. Sellers that advocate for themselves are twice as likely to close more so than absentee or lackadaisical owners. If you are going to spend 6-13 months processing a short sale transaction, you chances of getting to closing are higher if you are informed, in close contact with the bank and knowledgeable about your market area.
Until Next Time on the Q and A on njretoday.com
Angie Perez is a NJ Circle of Excellence award winning real estate agent for Weichert, Realtors in Edison. She sells anywhere from 12-25 houses per year on a consistent basis since 2005. Ms. Perez is primarily a buyer's agent on 60% of her real estate sales where she represents rental income investors, first time home buyers & trade up home buyers of 1-4 family homes within specific towns encompassing 4 NJ counties: Union, Essex, Middlesex and Somerset County. Many of Ms. Perez's clients appreciate her ability to negotiate favorable real estate deals for them. Many of her clients commented that her research abilities, her honesty, her knowledge of local market trends and her proficiency to manage multiple real estate transactions from start to close are some of the reasons why she was hired as their agent of choice. Please call, text or email Angie Perez to ask if she lists or sell in your town. If she can not help you, Ms. Perez would be more than happy to help or refer you to someone who can. Cell: 973-715-6210 email: angie @ njretoday .com
123 Lincoln Highway Edison, NJ, 08852 USA
angie@njretoday.com • (973-715-6210)
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