I have a SS deal where the seller's agent mentioned they have an attorney who handles the negotiation with the bank (Chase) and will be charging an "added fee". I assume that's what some called the negotiation fee? I have yet to find out whether it's a flat fee or a percentage of the sale price.
How are SS negotiation fees addressed on the HUD1 or the purchase contract? Is it typical for the buyer to pay 100% of this fee or split between the buyer and lender? I assume seller won't pay a dime since they get nothing out of it? Once I find out the amount I probably will pad my offer price to account for it.
Also, other SS I have purchased the seller is in some form of delinquent payment. Agent told me seller has not missed a payment but once the contract is executed and they prepare the package he will begin to not pay...is this right? I thought the bank will only consider a SS if the seller hasn't pay a few months? What if the bank receives the SS papers and the seller hasn't missed a payment yet? Is that going to be a problem?
Buyer paid SS negotiation fees are not uncommon. It certainly needs to be spelled out in the purchase agreement. Some attorneys try to charge stupid fees though. As to being late on payments, not all require it. Freddie requires borrower to be 61 days late at closing, for example.
Are these fees typically spelled out in page 9, item 20, line 479 of the FAR/BAR AS IS residential form as a line item or is there an additional fee addendum?
I am dealing with the listing agent directly and I am being told:
(1) There is a $695 processing fee paid to the firm - spelled out as additional terms.
(2) The seller's attorney will charge a fee the buyer pays - I said I have my own attorney, but if the seller is dictating title agent they should be paying for it or the lender absorbs it, why am I paying for it? I asked if I will be getting a title insurance policy out of it he said probably not but he's not sure. I said OK well, let me see the list of services and fee schedule as I want to know what I will be paying for...he said "sure, but we don't know how much until we are near closing because we don't know how much work would be involved..."
That's on top of the 6% commission he'll be getting.
Sounds a bit fishy to me.
The $695 fee is just extra to the RE brokerage($250-295 is typical)and nothing to do with the short sales. The "we won't know how much it is going to be...." Is just crap. Seller attorneys are generally the Worst at getting short sales approved, then they want to hold the deal "hostage" until somebody agrees to their fee. Yes you will get clear title and title insurance, but in Dade you typically pay for it, but it can be on the seller's/bank's side. Do you know, is the attorney connected with the broker/agent, or with the seller? It's easier to get an attorney out of the way if he's just connected with the broker, as opposed to being the owners's "trusted" attorney.
I believe the attorney is with the brokers just from the agent saying "we use an attorney who knows what he's doing, Jose works very hard and turns things around quick for us he is the best!"...so I am guessing the attorney is connected to the broker.
the agent "sound like" he is expecting those terms to be met or else the deal is not going through.
right now, I am basically negotiating with "him" more than the owner. He said the owner trusts his judgement and will go with his recommendations, so he and I are going back and forth on the terms and not once he has to "check with the owner".
I guess in South Florida I run into this every corner I turn LOL.
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