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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Muhahahahahahahaaaaa
So, we were *almost* scammed. Almost. We put an offer on a house going into short sale. Listing agent didn't have the expertise to negotiate with the lienholders so she hired a short-sale negotiator. Short sale negotiator had us sign an agreement to pay her fee ($5k) if the lender refused. I had hesitations, considering the listing agent HIRED her because the listing agent couldn't do the job herself, and thought the listing agent should absorb some of the costs, but we went ahead and signed the agreement to get the deal closed.
So, the bank accepted our offer (YAY!!! We're getting the house almost $150k below the listing price!  ). The next day, the listing agent emailed us and told us that the agreement we signed for the short-sale negotiator fee was "null and void" and that the negotiator now felt that, because there were more liens than she anticipated, she was raising her fee to $12k 
I'm SURE they get away with this all the time. But not with me. So, in the last few days, I fired off a bunch of emails, stating, to the effect, that, as the only attorney to this transaction, I don't see how they can unilaterally void and nullify a binding contract without the consent of ALL parties, and without additional consideration, and that, what they were proposing was illegal, and unethical. I also stated, if they were going to stick to their story, the listing agent would have to absorb the additional cost, as she was the one who couldn't do the job herself, and by hiring the short-sale negotiator, she's getting her commission, so she should pay part of the fee.
DH called the short-sale negotiator yesterday. She grumbled about how my emails were "appalling". And she said, she's bringing her fee back down to $5k.
HA!!! TAKE THAT YOU SCUMBAG!!! There will be NO scamming with this attorney!! 
After all is said and done, and we've closed on the house, I'm reporting both of them to the BBB, and the owner of the short-sale negotiation company, who is an attorney, to the disciplinary board.
Message edited 9/14/2010 9:45:34 AM.
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Posted 9/14/10 9:44 AM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Muhahahahahahahaaaaa
I hope they don't pull anything else 
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| Posted 9/14/10 9:47 AM |
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Lillykat
going along for the ride...
Member since 5/05 16253 total posts
Name:
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Re: Muhahahahahahahaaaaa
That is great!! Hopefully they won't get away with scamming another couple who doesn't know that they get away with that!
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| Posted 9/14/10 10:19 AM |
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CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
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Re: Muhahahahahahahaaaaa
I love this!!!!!!!
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| Posted 9/14/10 10:24 AM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Muhahahahahahahaaaaa
Truth is, I get a pit in my stomach to think of the crap that these kind of people get away with on a daily basis. It's a disgrace and there HAS to be better regulation of these kind of practices
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| Posted 9/14/10 10:29 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Muhahahahahahahaaaaa
You might have been born at night but not last night.
What kind of crap is that?
Was there any stipulation of increasing the fee if x, y or z happened?
Judge Judy would have b!tch slapped her.
In fact, I wouldn't pay any fee...let them chase you for the money.
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| Posted 9/14/10 10:31 AM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Muhahahahahahahaaaaa
Posted by Blu-ize
In fact, I wouldn't pay any fee...let them chase you for the money.
Can't do that - it will stall the deal - we're looking for a closing date of 9/28 and because we are paying cash, no financing, the bank is more inclined to accept our offer, get this one out of the way quick and move on. I'll pay the $5k if it means a quick closing and free and clear title, but if they try to pull any other sneaky antics, they will seriously regret it. I think, hope, now that they know my position, they won't be stupid enough to pull another trick like this.
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| Posted 9/14/10 10:36 AM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Muhahahahahahahaaaaa
Can you write a check to them and then stop it somehow after the close..I totally think that even the 5k she's charging you is a farce!!!!
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| Posted 9/14/10 10:58 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Muhahahahahahahaaaaa
Posted by Bxgell2
Posted by Blu-ize
In fact, I wouldn't pay any fee...let them chase you for the money.
Can't do that - it will stall the deal - we're looking for a closing date of 9/28 and because we are paying cash, no financing, the bank is more inclined to accept our offer, get this one out of the way quick and move on. I'll pay the $5k if it means a quick closing and free and clear title, but if they try to pull any other sneaky antics, they will seriously regret it. I think, hope, now that they know my position, they won't be stupid enough to pull another trick like this.
I can't believe they get away with it. How could they possibly risk getting nothing over this. You could have pulled the whole deal...everyone would lose..
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| Posted 9/14/10 11:12 AM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Muhahahahahahahaaaaa
Posted by pickles16
Can you write a check to them and then stop it somehow after the close..I totally think that even the 5k she's charging you is a farce!!!!
The negotiator is providing a service so I suppose she is entitled to be paid; she's negotiating all the liens on the house, which are voluminous. They have arrears for local township taxes, over $200k in arrears for federal taxes, and god knows how much in child support arrears. Although the listing agent is the one who should be absorbing the cost because without the negotiators services, she wouldn't get her commission! I will definiltely be filing some complaints after the deal closes, but I may risk some liability if I cancel the check.
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| Posted 9/14/10 11:14 AM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Muhahahahahahahaaaaa
Posted by Blu-ize
Posted by Bxgell2
Posted by Blu-ize
In fact, I wouldn't pay any fee...let them chase you for the money.
Can't do that - it will stall the deal - we're looking for a closing date of 9/28 and because we are paying cash, no financing, the bank is more inclined to accept our offer, get this one out of the way quick and move on. I'll pay the $5k if it means a quick closing and free and clear title, but if they try to pull any other sneaky antics, they will seriously regret it. I think, hope, now that they know my position, they won't be stupid enough to pull another trick like this.
I can't believe they get away with it. How could they possibly risk getting nothing over this. You could have pulled the whole deal...everyone would lose..
If we don't agree to pay the fee, they won't negotiate with the lienholders and the deal will fall through. Truth is, we are getting the house WAYYYYY below cost, so I'm not willing to risk letting the deal fall through over $5k. They could easily re-list as a short sale and I'm sure there will be enough people interested, and foolish enough to fall for the negotiator's antics...
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| Posted 9/14/10 11:16 AM |
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jilliibabii
Mrs. O'Connor
Member since 6/10 12821 total posts
Name:
Jillian
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Re: Muhahahahahahahaaaaa
Good for you!!!
And congrats!  
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| Posted 9/14/10 12:52 PM |
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Re: Muhahahahahahahaaaaa
Posted by Bxgell2
Short sale negotiator had us sign an agreement to pay her fee ($5k) if the lender refused.
If the lender refused - refused what - your offer or to pay her?
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| Posted 9/14/10 1:23 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Muhahahahahahahaaaaa
WHAT?????
I am sorry- but neither the buyer or the seller should be paying anyone a fee to negioate a short sale
the fee is paid by the bank
If you are looking to purchase a property like that you need to make sure you are using professionals
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| Posted 9/14/10 1:57 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Muhahahahahahahaaaaa
If the bank refused to pay the short sale negotiation fee, which they are refusing, which, from what I understand, isn't all too uncommon given this market. But, from what I also understand, if the bank refuses to pay the negotiation fee, then the agents usually absorb the cost, because, after all, they wouldn't get their commissions otherwise!
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| Posted 9/14/10 2:00 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Muhahahahahahahaaaaa
Posted by Bxgell2
If the bank refused to pay the short sale negotiation fee, which they are refusing, which, from what I understand, isn't all too uncommon given this market. But, from what I also understand, if the bank refuses to pay the negotiation fee, then the agents usually absorb the cost, because, after all, they wouldn't get their commissions otherwise!
not with the attorney I work with or any of the ones who have approached me to get my business
he will take what ever fee the bank gives
they rarely give nothing- they ask for $5k- it normally ends up being $1500
I would never be expected to absorb the fee with the people I use
I would ask for proof that the bank isn't paying the fee- considering they pay the full 6% real estate comission on all short sales
I have never heard of this and I am a realtor dealing in distressed properties- I smell a scam!
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| Posted 9/14/10 2:22 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Muhahahahahahahaaaaa
Beth, that's exactly how I feel...
The agreement says: "Every attempt will be made by the processor to obtain compensation from the Seller's side of the HUD-1 Settlement Sheet. Should the Lender disallow that fee, Buyer agrees to pay the Discount Fee of $5,000.00, as a Buyer's settlement charge to be included on the HUD-1 Settlement Sheet. Should the efforts of the Processor not be successfull, the Buyer is not obligated to pay any Fee, and there shall be no further obligation by the Buyer."
I've been researching like CRAZY and while this type of contract is illegal in many states, Pennsylvania, where we live, hasn't yet regulated on this particular issue. So, while it smacks of unethical, I don't think it's specifically illegal. Although the fact that they tried to unilaterially change the terms of the Agreement without our consent is clearly a breach of law...
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| Posted 9/14/10 2:27 PM |
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BRod-Cheng
I'm going to be a big brother!
Member since 6/07 1860 total posts
Name:
Betty
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Re: Muhahahahahahahaaaaa
nice job!!!
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| Posted 9/14/10 10:53 PM |
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JoesWife628
Our family is complete :)
Member since 8/08 3934 total posts
Name:
Me
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Re: Muhahahahahahahaaaaa
is this house in Centereach by chance?
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| Posted 9/15/10 12:59 AM |
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KrisT
Two Boys for Me!!
Member since 1/07 5213 total posts
Name:
Kristin
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Re: Muhahahahahahahaaaaa
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| Posted 9/15/10 11:23 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Muhahahahahahahaaaaa
Posted by JoesWife628
is this house in Centereach by chance?
she lives in PA
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| Posted 9/15/10 3:04 PM |
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