Reasonable Fee To Pay A Company That Performs A Short Sale?
What is a reasonalbe finders fee to pay a company that negotiate a Short Sale on a $40,000 property. And should that fee be paid after closing of the Short Sale. Thanks in advance for any feedback.
401kjannull
The amount of work to effecuate a preforeclosure short sale on a $40K property is probably the same as it would be for a $400,000 property.
I dtermine the fee on a case by case basis... subject to the anticipated difficulties, number of mortgagees, etc.
Whatever the agreed upon fee, I take a non refundable retainer, and either split the balance over three installments, or have the fee held in escrow by a third party (bank/lawyer) to be released upon proof of mortggagees approval of terms for short sale.
SSP - who pays you? The owners make no money on the SS and are in foreclosure. Does your fee show up on the HUD?
A standard fee in Illinois for such a service is a $350.00 retainer plus 1% of the sale amount, with a minimum of $1,000.
With the above being true the fee to the negotiating the short sale on a $40,000.00 would be $1,350.00. The $350.00 would be paid in advance and the $1,000.00 woould be paid at closing.
Fee to clients:
· 1% of sale price (minimum $1,000 if sale price is under $100,000)
plus a $300 retainer fee (non-refundable) paid and sent with the file.
The 1% of sale (or $1,000 minimum if sale price is under $100,000) is to be paid by the escrow/title company at close of sale escrow.
Note:
The client must sign an escrow demand letter that includes the total fee.
THE 1% FEE IS ONLY PAID IF THE SALE IS COMPLETED.