Disregard Bank Policies About Short Sale Commissions
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We are going to talk about a commission quarrel that we had on a file that was being handled by Bank of America. The backer on the file was HSBC. The file was rejected in spite of the offer being the same as the BPO. We came to find out that they sold the loan to Condor Capital.
Condor Capital is an asset management business that sells REOs and buys ugly stuff and they capitalize on it. They are more of an investor in this affair out for revenue. They didn’t necessarily do any loans. So, Kevin officially started dealing with them on July 1st.
Condor Capital reviewed the documents and noted that the commission was at 6%. They asked that we decrease the commission to 5%. They essentially sought to make the commissions 5% of their net sales value, which was buy price excluding the buyers closing expenses. Kevin replied to them informing them that he was not willing to do that. He knew that they liked the offer because they had previously told them it was a good proposal.
Condor Capital replied that their rules simply allowed them to give 5% commissions. If Kevin didn’t accept that decree, they would simply foreclose on the property. This foreclosure idea got Kevin a smidgen disturb.
It was obvious that they were out to make more cash rather than come across a win-win situation for both groups. Kevin explained that he could get them a poorer offer and agree to the lower commission, but that wouldn’t be a win-win situation for either party. The rules they were utilizing weren’t in the best interest of either party. At the end of the day, you need to set up rules that help all entities successfully close deals.
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