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Property for sale says "potential short sale" "Loss Mitigation Service Contract"

Hi all... as I have been house hunting, I came across a property that is listed at 110k. Loved the house and asked my agent to put an offer at 90K. I just recieved some paper work from her about having to sign a contract with Unique Loss Mitigation Services. it states something about the buyer paying them 1200 at closing. can anyone clarify what this means... As i have been putting in offers, even on short sales, this is the first time seeing this. Please message back if you need more info... i will gladly provide

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July 29 2012 - Austin
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I have seen that fee as high as $4000 to be paid by the buyer.  In principle I think the bank should be responsible for that fee.  Agents cannot negotiate short sales and if the buyer is not willing or able to do it, then a company is hired to negotiate on their behalf, it only adds another layer in the already difficult process.  As part of the offer you can write on the contract that the $1200 negotiating fee is to be paid by the seller and see what they say.  Some lenders will absorb it as part of their loss others will not. 
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July 30 2012
Some banks, usually small ones that don't have a loss mitigation department, use third party companies to negotiate for them and they have a fee that they charge either to the buyer or the bank pays it.  I have always seen it as always being 1% of the sales price.  It's basically how that company gets paid.

Naima
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July 30 2012
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hey guy 

suppose to talk about it tomorrow but just concerned and was just posting the question 
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July 29 2012
Never heard of it either, and I would be hesitant to sign anything outside the customary contract and addenda.

What does your agent have to say about it?
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July 29 2012
 
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