All Forum Posts by: Account Closed

@Marc Middleton, your comments above are off as I don't advertise Realtor Rebates, so don't know what you are talking about with the Google search ratings.  All anyone needs to do is Google the subject to see hundreds of thousands of offers by realtors all over the country.  

The US Dept. of Justice seems to think real estate commissions are getting out of hand and though the rebates in their examples are very Weak, and consumers can save a lot more, they're trying to alert consumers of the savings that is available to them

Department of Justice: Rebates Make Buying a Home Less Expensive

Consumers Can Save Thousands of Dollars in Commissions

40 States that allow realtors to offer rebates

Besides the US Dept, of Justice, exactly what does the dear leader of Keller Williams have in store for the Mortgage Industry here in his Youtube videos?

@Jill F., are you Currently in the mortgage industry? 

@Anthony Pizzarelli,

Welcome to the BP forum. 

As a Florida Mortgage Broker, I've been helping my pre-approved borrowers obtain this savings for almost 20 yrs now.

Unlike Seller Credit, which the buyer has to actually pay more for the property to get the seller credit, Real Estate Commission Rebate is generally pure Tax Free savings for the consumer.

Read more here:  

US Dept. of Justice on Realtor Rebates

FREC (Florida Real Estate Commission) Rule 61J2-10.028 paragraph (2)The sharing of brokerage compensation by a licensee with a party to the real estate transaction (i.e. the buyer or seller) with full disclosure to all interested parties is not considered a violation

Hope this helps.

Good luck!

@Brian Pulaski,

The the problem is,  lenders are simply terrified as they're not used to saying what they know to be facts if it's at odds with the establishment Realtors' reviews on any subject in a public forum.

They aren't typically cowards, just their view is limited and voice muffled from their position of being so far up north, that you can't tell where they end, and the other begins.

On the other hand, Realtors are not used to a mortgage broker challenging their opinions and comments in a public forum either. This is why you see such a pile on whenever I post of comment.  

However, I am not thin-skinned and I welcome such discussions to help BP investors see alternative views and ideas on Topics.

But if you want to see a subject that lenders will absolutely avoid, yet high-five each other and fist pump as they read it, bring up the discussion topic of:

Real Estate Commission Rebate savings for consumers.

Although, realtors seem to be okay with it and it's gathering steam as thousands of realtors are offering this savings in 40 states.

@Charlie DiLisio, please don't give me such credit as I'm dum-mer than a box of rockx when come too cumputor stuf.  

You'd laugh watching me type with my left index finger and my right hand middle finger and thumb, looking down at the keyboard to hunt and peck.

If you are assuming I'm somehow doing this SEO thing, I'm not.  In fact, up until now, I didn't even know what SEO stood for.

As far as your question, its from 2% to 3% of the commission is what I've found buyer agents are willing to loan post closing.

Apparently, from what I'm hearing, there are realtors in FL willing to loan out 2% of the 3% commission that listed properties are offering in Palm Beach County, Broward, Miami/Dade, Sarasota, Naples, Tampa Bay & Orlando.

It's a post closing, 2nd lien cash out loan that can go behind a 97% LTV purchase loan, basically up to 99% CLTV with rates in the 2 to 3 range on a 360/60.

In theory, the buyer could purchase a $463,000 home, with closing costs paid thru seller credit, with only about $14,000 out of pocket to close 

Then get an equity loan from a realtor, post closing for $13,000.

@Brian Pulaski, I like investors and my realtor partners, but this doesn't happen when I can refer the borrower / buyer to my realtor partners.

Again, you and those with your same mindset are completely missing the point as this scenario relates to the $2.00 rounding scenario discussion.  

Yes it's partly the buyer's fault, but they're not claiming to be the "professional" & "experienced" realtor who was told the facts and given specific instructions in advance to adhere to.

Just like some have commented on page 3 regarding rounding, basically saying "why should I round up just to make the lender's job easier," (nauseating, but so classic) the realtor in this scenario feels that at this point they've done their job, so it's the Lender's fault if they can't get the loan done from here.

Again, it's this antiquated mindset, refusal to follow instructions and/or listen to good advice is what I see are some of the problems with a lot of realtors these days.

Unlike 99% of all Loan Originators who are 100% dependent on realtor referrals, I'm able to share info on topics that all LOs will agree when talking among other LOs, but are terrified to agree in front of realtors.   

@Matt K., it's not maybe, it's obvious that nobody but those in the Mortgage Industry can understand the potential issues that after a contact price agreed to, such a no brainer, simple rounding up of $2.00 can help void in the 2018 mortgage processing gauntlet files go thru at Mortgage Lenders and Banks.

This same mindset and lack of common sense is displayed when you tell a buyer's agent how they need to structure a purchase for a borrower with limited down payment and reserves.

..."Okay Mr. Buyer's Agent, max sales price my borrowers can go is $300,000 and the borrower must have 3% seller credit to pay closing costs negotiated, you got it?   Are you sure, because this is the borrowers MAX purchase price to be able to close on a home." 

The what happens?  You get a contract for $305,000 and with NO seller credit for buyer's closing costs on a property that was listed at $315,000.

You call the buyer agent and ask, "what the heck did you do, you went over the max sales price and no seller credit? Is there an issue with the value Mr. Buyer Agent??

And this is the CLASSIC response you get...Oh no, there are comps for $318k, but this is the house they liked best and the seller wouldn't pay any closing costs"

https://www.biggerpockets.com/forums/311/topics/124568-reasons-for-seller-concessions-vs-price-discount 

Besides going $5,000 over the max sales price the buyer can actually qualify for, obviously the seller is not going to also pay 3% seller credit in addition to the lower negotiated sales price Mr. Buyer' Agent!   

This is the same, out of touch mindset and lack of common sense displayed in these 6 pages of posts on the topic of rounding up $2.00.  

Wow 6 Pages about a $2 adjustment on almost three-quarters of a million dollar purchase price.

You would think that it was a discussion about Real Estate Commission Rebates.

Okay you have one out of 50 and he even noted at the end of his post the issues with not rounding.

What's interesting is to see how much passion there is from the "resistance" with thier refusal to take such a simple common sense action of Rounding a measly $2 to help ensure the borrower has a smoother loan process.

All these so-called experts that haven't a clue about the behind the scenes inner workings of the mortgage process  but are so quick to post their comments about a topic which they are completely oblivious to.

But this is not for them it's for the common sense BP investors who will read this topic and will be rounding up or down for now on.

And the search continues for one current mortgage industry person to comment