Expert: Lori Frankfort - 4/21/2009

Question
I am submitting an offer for my sister to buy a short sale listing. The listing is requesting a $995 short sale processing fee to the buyer which I think we should not pay. One I don't trust these companies and two it is the job of the listing agent to work with the lender for an approval, so why should my buyer pay someone else to do their job. I going to submit the offer without agreeing to pay this fee is this something you have any experience with or have seen alot. This is the first time I have seen it and I have closed 4 other short sales without any fees like this.

Answer
No, I have never heard of paying a fee to submit an offer for a short sale.  I wouldn't pay it either.  It sounds illegal, since it is the listing agent's responsibility to submit all offers to the seller in a timely manner.  To ask for money to submit the offer is just ridiculous.  Don't do it.  I would also mention in my cover letter why you aren't paying it and that if the agent has an issue with it you'll be discussing with the local Realtor board for "clarification".

Good luck,
Lori