My suggestion is that you don’t necessarily seek potential short sale opportunities… just be ready to 1) identify a potential candidate, and 2) know how to structure it properly when one rears it’s ugly head.
Kick-backs is a nasty word… especially when asked to authenticate a Federal HUD1 at closing. There are ways you can compensate the Seller, but it must be done outside the scope of the HUD1 for such things as the purchase of personal goods, or services (cellar/garage clean out).
In their written preforeclosure short sale approval letter, the mortgagee will set terms/conditions, including allowable real estate commission. In most cases, there is a limit on allowable commission, irrespective of the listing/sale agreement. The listing broker would have to agree to accept less than he/she is contractually due to facilitate the sale.
I have been searching lately for a good prospect for a mortgage short sale. I have found a couple places but they have been represented by realtors. My question is how can I put together a deal that will satisfy their commission and still net the amount of money I need to make it worthwhile. Also is it a common practice to give the current owner a kickback for allowing the deal through, and if so where can I get that money from within the deal?
Any info or tips or just plain common sense advice would be greatly appreciated. feel free to email me directly.
Realtors are your friends, if you know how to work with them (us).
If the property is being listed through a Realtor, great! That means you have someone in your pocket who the bank trusts who has a vested interest in selling the property.
Why you consider this to be a bad thing is beyond me.