Disregard Bank Rules Regarding Short Sale Commissions
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We are going to speak 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 folder was rejected regardless 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 company that sells REOs and buys ugly stuff and they capitalize on it. They are more of an investor in this business out for yield. They didn’t necessarily do any loans. So, Kevin officially started working 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 wanted to make the commissions 5% of their net sales value, which was buy price minus the buyers closing costs. Kevin responded to them informing them that he was not willing to do that. He knew that they liked the offer because they had earlier told them it was a fine proposal.
Condor Capital responded that their policies simply permitted them to give 5% commissions. If Kevin didn’t accept that ruling, they would merely foreclose on the property. This foreclosure idea got Kevin a bit disturb.
It was clear that they were out to make more money rather than unearth a win-win situation for both parties. Kevin explained that he could get them a lower proposal and agree to the inferior commission, but that wouldn’t be a win-win position for either group. The policies they were utilizing were not in the best interest of either party. At the end of the day, you need to set up policies that help all parties effectively complete deals.
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