LM FEE ILLEGAL

Got a phone call from my Agent today & according to a meeting he had with both of his brokers if you are not a licensed mortgage broker or realtor you are breaking the law by negotiating a SS in the borrower's behaf and collecting a fee. So I guess good bye to the A to C LM FEE. Are they right? or Where can I find this out with details? Does anybody know?
Thank you

Sam M.

Real Estate Investor · Kalispell, Montana

572 posts
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Jun 29 '10, 11:35 AM

I believe this is only true in the state of CA. Your post doesn't state where you are from.

Jonathan Rexford

Real Estate Investor · Vero Beach, Florida

Pro

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Jun 29 '10, 02:04 PM

In the state of Florida a Mortgage Broker can collect a fee for working the short sale NEG. The real estate agent cannot get an extra fee on top of the commission.

Also in the state of Florida there are some big changes with licensed people that are licensed as Mortgage Brokers.

E-Mail: jonrexford@gmail.com

Luiz Souza

Wholesaler · Gainesville, GA

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Jun 29 '10, 10:15 PM

I am in GA.

Sam M.

Real Estate Investor · Kalispell, Montana

572 posts
8 awards
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Jun 29 '10, 10:44 PM

It seems to me by looking at your posts over the last few months that you might be having trouble with short sales! Just for a few examples:
http://www.biggerpockets.com/forums/103/topics/51689-more-bad-news-about-sss-
And
http://www.biggerpockets.com/forums/103/topics/48800-second-killing-the-deal
And
http://www.biggerpockets.com/forums/103/topics/49647-short-sale-coming-to-an-end-
And
http://www.biggerpockets.com/forums/103/topics/48932-freddie-fraud-

What is the deal? I would recommend some changes to your business plan if you are having that much trouble! Like outsourcing your negotiations. Seriously!

I say it not out of spite just as an observation that you have started quite a few negative threads about SS's of late.

Edited: 06/29/2010 at 10:55PM by Sam M.

Luiz Souza

Wholesaler · Gainesville, GA

105 posts
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Jun 29 '10, 11:11 PM

Sam,

I am not here to bring no negative thoughts or ideas. You may be closing all of your SSs with no problems at all but in here in my neck of the woods there are not a lot of people doing A to B to C transaction or collecting LM fee and almost every little rumor or negative headline around put me on the spot. That's why I come to this forum for help or direction from people that know more than I do.
Thank you anyway

Sam M.

Real Estate Investor · Kalispell, Montana

572 posts
8 awards
50 influence

Jun 29 '10, 11:28 PM

Originally posted by Luiz Souza

Sam,

I am not here to bring no negative thoughts or ideas. You may be closing all of your SSs with no problems at all but in here in my neck of the woods there are not a lot of people doing A to B to C transaction or collecting LM fee and almost every little rumor or negative headline around put me on the spot. That's why I come to this forum for help or direction from people that know more than I do.
Thank you anyway

I was not suggesting you were just being negative. I believe what you are posting is based on your experience. I am getting the same fraud talk crap around here too! Even when you tell them it is all about full disclosure. I was talking with my agent/broker's co-broker and he said it is just because "people are small minded".

Best of luck to you. Nick (Motiv8td) just went through an "audit" by the RE commission as told in his own crass way here: http://www.biggerpockets.com/forums/103/topics/51633-team-motiv8td-vs-real-estate-commission

I am absolutely NOT offended by your crassness Nick! (in case you read this)