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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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SLIMEBALLS!!
So the closing was this morning for the house that went into short sale that we made an offer on - short story is that the listing agent couldn't handle the negotiations with the lienholders so she contracted with a "negotiation company", which asked that WE pay the negotiation company fee ($5k). We agreed, but then a week or two before closing they unilaterally "voided" the agreement and then told us the fee would be $12k! I called them out on the illegality of doing that, so they backed down and we went back to the $5k fee.
So, we go to closing. The $5k fee was listed on the HUD, appropriately. But they snuck in an additional $2k to be paid by the buyer to pay off child support liens. We were like  The negotiation company fee agreement said that, for the feel of $5k, they would provide free title, so why, at the ninth hour, were we being charged with the child support lien? And, on top of that, they somehow negotiated for the listing agent to get a higher commission as well.
A lot of screaming and yelling and back and forth. The listing agent and negotiator were TOTAL greedy little scumbags, making threats left and right. So we got up and started to walk out, and all of a sudden they back down and agree to pay the child support lien themselves, but for the rest of the closing they were grumbling.
So, we got the house - it's a total dump and will need a good 4-5 months of work, but we got an incredible deal on it, and I'm really excited!!! Image Attachment(s):
Message edited 10/7/2010 12:31:17 PM.
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Posted 10/7/10 12:26 PM  |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: SLIMEBALLS!!
Congratulations! Good for you for sticking up for yourselves too. How outrageous!
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| Posted 10/7/10 12:34 PM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: SLIMEBALLS!!
I'm glad you showed them who was boss!!!! And I'm glad you got the house!  
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| Posted 10/7/10 12:36 PM |
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avamamma
My Girl
Member since 7/06 3395 total posts
Name:
Tara
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Re: SLIMEBALLS!!
Congratulations Beth! Can't wait to see what a beautiful home you will make it.
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| Posted 10/7/10 12:36 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: SLIMEBALLS!!
OMG so gross!!! They were totally working this deal together and getting a cut from that 5k!!!
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| Posted 10/7/10 12:44 PM |
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cityandbeachmom
Vineyard hopping time
Member since 6/10 1821 total posts
Name:
Suffer the pain of discipline,
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Re: SLIMEBALLS!!
congratulations on the purchase of your house!
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| Posted 10/7/10 12:53 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: SLIMEBALLS!!
Posted by pickles16
OMG so gross!!! They were totally working this deal together and getting a cut from that 5k!!!
Yup!!! And I heard them talking afterwards - the listing agent told the negotiator that she found a bunch of short sale houses that she'll be sending to the negotiator.
So, basically, this listing agent finds homes that are going into short sale, wiggles her way in to be the listing agent, then passes off the negotiations to this negotiator, who negotiates with the bank to pay the listing agent's FULL commission, and then they both weasle the buyer into paying the negotiator's excessive fee. It's a nice, little, unethical, borderline illegal symbiotic relationship they have going.
Other states have regulated this kind of thing, making it illegal. Unfortunately, PA has not yet regulated these kind of practices. I'm glad we didn't get swindled, but I can only imagine how much they are dipping into other buyer's/bank's pockets, without them knowing otherwise!!  
And the negotiator had the NERVE to look at us and say, what, you want ME to eat the $2k? And we were like, um, yeah, that is what the fee agreement says - we pay you $5k, to get clear title, and if there are liens you can't negotiate, then you take that risk and absorb it! She was steaming mad... and threatened to tell the bank that our initial offer was going to be $25k more, which is funny considering SHE told us to lower our offer, so that she could up her fee and take it from us directly without putting it on the HUD...
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| Posted 10/7/10 1:01 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: SLIMEBALLS!!
Posted by Bxgell2
Posted by pickles16
OMG so gross!!! They were totally working this deal together and getting a cut from that 5k!!!
Yup!!! And I heard them talking afterwards - the listing agent told the negotiator that she found a bunch of short sale houses that she'll be sending to the negotiator.
So, basically, this listing agent finds homes that are going into short sale, wiggles her way in to be the listing agent, then passes off the negotiations to this negotiator, who negotiates with the bank to pay the listing agent's FULL commission, and then they both weasle the buyer into paying the negotiator's excessive fee. It's a nice, little, unethical, borderline illegal symbiotic relationship they have going.
Other states have regulated this kind of thing, making it illegal. Unfortunately, PA has not yet regulated these kind of practices. I'm glad we didn't get swindled, but I can only imagine how much they are dipping into other buyer's/bank's pockets, without them knowing otherwise!!
And the negotiator had the NERVE to look at us and say, what, you want ME to eat the $2k? And we were like, um, yeah, that is what the fee agreement says - we pay you $5k, to get clear title, and if there are liens you can't negotiate, then you take that risk and absorb it! She was steaming mad... and threatened to tell the bank that our initial offer was going to be $25k more, which is funny considering SHE told us to lower our offer, so that she could up her fee and take it from us directly without putting it on the HUD...
thats ridiculous..I'm always leery of working with ppl that agents etc suggest just bc of this reason alone...I know I shouldn't generalize but I've heard about such unethical BS all the time...LUCKILY thus far we've used some ppl that were recommended by our lawyer and the realtors and we've been pleasantly surprised, but this doesn't shock me one bit...they totally are capitalizing on this market which everyone has the freedom to do, but do it ethically not like a POS!!!
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| Posted 10/7/10 1:07 PM |
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cateyemm
Twins!
Member since 7/10 8027 total posts
Name:
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Re: SLIMEBALLS!!
you should write a letter to whoever in PA would regulate that. lawmakers i mean. the more it comes to their attention, the quicker they will do something about it .
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| Posted 10/7/10 1:35 PM |
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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: SLIMEBALLS!!
People lie..I trust no one.
So glad you are a smart cookie.
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| Posted 10/7/10 1:56 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: SLIMEBALLS!!
Posted by Blu-ize
People lie..I trust no one.
So glad you are a smart cookie.
Our agent asked that Gadi talk at the closing instead of me  I guess my mouth is a little too big, but I think I got my point across with the expression on my face  And, well, sticking the stubborn, loud-mouthed Israeli on them was just as bad, if not worse
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| Posted 10/7/10 2:13 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: SLIMEBALLS!!
Wow....I don't even know what to say
People like this give us all a bad name
first - if there was an additional lien- that needed to be on the HUD-1 since day 1
and it should come out of the banks end- not for you to pay
I just completed a 16 hour ceritification class to deal with distressed properties- sadly there are only 11 other agents in suffolk with this certification and over 2300 short sales listed
the agent you use plays a huge role- I am shocked this deal even closed-
I highly suggest that anyone looking to buy or sell a short sale use an agent who is a CDPE
the banks prefer to work with agents who have this and we are held to a higher standard
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| Posted 10/7/10 3:36 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: SLIMEBALLS!!
sounds like a total nightmare but at least you got a great deal on a new house
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| Posted 10/7/10 3:44 PM |
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Waste06
Waste not, want not
Member since 6/06 7219 total posts
Name:
Lois Mom Mommy Mama Ma
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Re: SLIMEBALLS!!
I'm shocked they even tried to sneak that in considering you ripped into them big time the first time around. 
Congratulations on the "new'" home. I can't wait to see demolition and renovation pictures!!
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| Posted 10/7/10 4:56 PM |
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