Short sale negotiator - shady dealings?

We put an offer on a house that was going into short sale. The short sale negotiator initially told us to lower our offer to the bank by $25k in case there were additional, unknown liens. We signed an agreement to pay the short sale company $5k for their services in negotiating with all lien holders.

So, today we get notice that the short sale negotiator wants to increase her fee from $5k to $12k. The rationale she provides is that she discovered additional liens for child support and township taxes that she will have to negotiate. She claism that, when she originally asked for $5k, she didn't have the "full picture" and hadn't "sculpted" the deal with the bank.

Apparently our offer has been approved by the bank. The short sale negotiator now has to get the liens removed from title. She needs us to respond ASAP to close by 9/29, with our agreement to pay $12k now instead of $5k.

Anyone familiar with this kind of stuff? Are we getting raked, or is this standard operating procedure with short sale companies??? I don't want to be suckered, but I also don't want to lose an amazing house over $7k.

Please help!!!!

Re: Short sale negotiator - shady dealings?

Does the initial agreement you signed with her cover this contigency?? If so, I think I might try to hold her to it or, at minimum, negotiate the amount.

Is it possible, there is another deal on the horizon, one where she can charge 12K?? In that instance, you were essentially cannon farter.

I'm not at all familiar with short sale negotiators, is she a lawyer??? If so, this shouts ethical breach. Even if she's not a lawyer, she's your "agent" and as such likely plays a fiduciary role.

Re: Short sale negotiator - shady dealings?

Sounds shady to me, but I'm not an expert. Sounds like she should have figured that into her amount in the first place to cushion herself.

Good luck, I hope it works in your favor!

Re: Short sale negotiator - shady dealings?

I have never heard of a short sale negotiator, is this the realtor? Shouldn't the bank be dealing directly? I would think a quick search of public records woudl have shown up any liens on the property, no? If so she should have known what to charge.
Good luck, hope it works out!

Re: Short sale negotiator - shady dealings?

Maybe contacting a title company would give some information about this. Sounds pretty crazy to me. We did a short sale but there were no liens on the house.