Tuesday, February 2, 2010

Banks Pull More Nonsense

This doesn't top some of the other nonsense we've discovered banks pulling, but it's pretty nasty.

The bank selling the house our buyer fell in love with requires that the buyer's Realtor reduce their commission (i.e. take a pay cut) if the buyer wants the seller to help pay his/her closing costs or make repairs on the house.

Lots of first time buyers (nearly all, in our experience) have saved money for their down payment but take the opportunity offered by our current market to ask the seller to cover the cost of their closing costs. And lots of bank owned homes need minor repairs before their FHA loan will be approved.

So essentially, if our buyer makes a request made by most home buyers in the field today, the bank will decrease our paycheck? Great. Just great.

*edited to add - after talking w/ my partner Chris this morning about this, I realized my post needed some clarification on 3 points:

First, the Realtors' Ethics Code says agents can't ever allow potential commission  earnings affect what they advise their clients to do.  If our buyer loves a house whose seller is noodling around with our paycheck because they can, and it's a good house & deal for our client, we have to take the pay cut without comment.

Second, the bank buried this commission information deep within a set of forms buyer is required to submit with his/her purchase offer. The paycheck reduction information isn't clearly and transparently displayed in the typical spot on the MLS data sheet like everybody else's commission information.

Third, at the price point our buyer is shopping the bank's savings via this method is about $125. Bottom line - the bank is being shifty to save a buck and a quarter.