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Answers (10)
Best Answer
- Sharyn & Victoria Crown, "crownandcrown"
- Contributions:24
Are you purchasing a short sale? Have you switched from a conventional loan to an FHA loan? What does your lender tell you? If an FHA approval is being requested, it may be that is the type loan/mortgage you are going to obtain. There is a marked difference between a conventional and an FHA loan and if you are using an FHA loan, then a request for preapproval is not unreasonable. Talk with your lender asap..
Although we see a negotiation fee sometimes placed on the buyer in a short sale, it is disclosed at the very beginning so the buyer can decide if they want to proceed or not.
If your agent is not the listing agent, he/she has very little leverage. The seller and the listing agent control the sale in a short sale. Along with the seller, you will also have to obtain approval from the seller's mortgage lender. Sometimes they approve and sometimes they don't.
Do you want to proceed with the sale? If you don't, ask your agent how you go about cancelling the transaction. If you do, ask your agent what is going on and do they know why the listing agent has not deposited your check into escrow. And if your purchase is not a short sale, then you are right. It is a very odd situation. If the purchase is a short sale, then you have a lot of frustration ahead of you.
Although we see a negotiation fee sometimes placed on the buyer in a short sale, it is disclosed at the very beginning so the buyer can decide if they want to proceed or not.
If your agent is not the listing agent, he/she has very little leverage. The seller and the listing agent control the sale in a short sale. Along with the seller, you will also have to obtain approval from the seller's mortgage lender. Sometimes they approve and sometimes they don't.
Do you want to proceed with the sale? If you don't, ask your agent how you go about cancelling the transaction. If you do, ask your agent what is going on and do they know why the listing agent has not deposited your check into escrow. And if your purchase is not a short sale, then you are right. It is a very odd situation. If the purchase is a short sale, then you have a lot of frustration ahead of you.
- Jeremy Lehman, "Jeremy Lehman"
- Contributions:36
I know this question was posted some time ago, but it's important to note that a negotiation fee is considered an agent commission, cannot be paid by a buyer. If you are looking to purchase a property and the seller or listing agent insists you pay for the shortsale negotiator, go look for a different home to purchase. It shows inexperience on the part of the listing agent and is a major red flag for possible litigation in the future.
Also, even thought the listing agent and seller do control the shortsale process, it's important for a buyer to consider using an agent that has the buyers best interest in mind rather than trying appease to clients on both sides of the table. I good buyer agent representing you in a shortsale can really help if you are not experienced with this type of transaction.
Also, even thought the listing agent and seller do control the shortsale process, it's important for a buyer to consider using an agent that has the buyers best interest in mind rather than trying appease to clients on both sides of the table. I good buyer agent representing you in a shortsale can really help if you are not experienced with this type of transaction.
- Nathan Girard, "NathanGirard"
- Contributions:12
The best way to go about any escrow issues especially those that go past what the law requires is speak to your real estate lawyer on the transaction. By law within 3 days they are required to deposit said escrow or else you in Massachusetts anyways can potentially sue for up to triple damages. I would contact a real estate attorney sooner rather than later.
- Gene Riggs, "govagent1"
- Contributions:72
Your broker and agent have 3 day by law to deposit the escrow check into the escrow at a title company or in the brokers escrow acct. in Michigan.
I hope you are working with a buyers agent and not the agent who listed the home. However in any event you may demand you money back.
The bank in a short sale controls everything. If the bank does not approve the offer it is dead.
[edited by Zillow moderator to remove self promotion and contact information. Please refer to Good Neighbor Policy]
I hope you are working with a buyers agent and not the agent who listed the home. However in any event you may demand you money back.
The bank in a short sale controls everything. If the bank does not approve the offer it is dead.
[edited by Zillow moderator to remove self promotion and contact information. Please refer to Good Neighbor Policy]
- Michael Emery, "MikeEmery"
- Contributions:7298
If the negotiation fee wasn't in the original purchase agreement or any attached addendums, it would have to be included in an addendum that would have to be signed by both parties.
You simply refuse to sign the addendum.
And as the sellers agreed to accept your conventional loan (also I presume an addendum on your purchase agreement although I'm not familiar with the contracts in your state) by changing the requirement that you MUST use FHA, they are changing the terms of the contract in which they have agreed.
As you can see, this is a mess of epic proportions. You might best be served with a short consultation with an attorney to further explore your options as your agent is not an attorney and has apparently surpassed their skill set.
You simply refuse to sign the addendum.
And as the sellers agreed to accept your conventional loan (also I presume an addendum on your purchase agreement although I'm not familiar with the contracts in your state) by changing the requirement that you MUST use FHA, they are changing the terms of the contract in which they have agreed.
As you can see, this is a mess of epic proportions. You might best be served with a short consultation with an attorney to further explore your options as your agent is not an attorney and has apparently surpassed their skill set.
- Jeanine Crijns, "Jeanine Crijns"
- Contributions:36
Did you sign off on counter offer.. ??
If not.. you are free to go....is there an inspection contingency... ? That will be also a way to still walk away.. regardless of inspection results. Talk to your broker/agent there are options..
If not.. you are free to go....is there an inspection contingency... ? That will be also a way to still walk away.. regardless of inspection results. Talk to your broker/agent there are options..
- funmama8
- Contributions:3
The listing was posted "cash to new loan" not FHA and it is a short sale. I have contacted the broker and he states that there is not much he can do. My loan is conventional but the sellers lender wants an FHA approval before they will proceed.
As for the negotiaion fee, that was not disclosed until a counter offer was presented after seller accepted the orignal offer. Would I be in legal trouble if I walk away and the find another agent.
Anyways, thank you for your advise.
As for the negotiaion fee, that was not disclosed until a counter offer was presented after seller accepted the orignal offer. Would I be in legal trouble if I walk away and the find another agent.
Anyways, thank you for your advise.
- Jim Stevenson, "therealtorguy"
- Contributions:1111
In the listing, did it say that they seller would accept a conventional mortgage? If so, I don't know why you need the FHA approval.
Was the $3,000 negotiation fee in any of the documents you signed, or is it a new fee that they are adding to the deal? I have never heard of a negotiation fee.
I hope some lenders reply to your question to see if these are reasonable approvals and fee's that these realtors are requesting. If not, it may be time to find another agent.
Was the $3,000 negotiation fee in any of the documents you signed, or is it a new fee that they are adding to the deal? I have never heard of a negotiation fee.
I hope some lenders reply to your question to see if these are reasonable approvals and fee's that these realtors are requesting. If not, it may be time to find another agent.
- Kathy Dahl, "Kathy Dahl Realtor"
- Contributions:1
Contact your agents Broker. The broker should possibly get involved at this point. If you have a legally binding, signed contract, it should not be open for further negotiations and your agent should be representing your best interests.
- Mya Berlyant, "MyaBerlyant"
- Contributions:260
And what did the agent's responsible broker say?
My R.E. agent is worthless along with her broker. They may cost me a deal. What do I do?
'The listig agent took my escrow check 2 week ago and still has not opened escrow. My agent has told me I now need and FHA approval even though I have been pre-approved for a conventional loan to open escrow not to mention that I have to pay an additional $3000.00 negotiation fee on top of closing costs. What do I do?
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