Can a borrower pay a fee charged by a third party negotiating a short sale on the seller’s behalf?

Per FHA, a borrower can pay a fee charged by a third party negotiating a short sale on the seller’s behalf under the following conditions:

·         The dollar amount of the fee, and that the borrower agrees to pay such fee, is disclosed in the sales contract.

·         The fee charged is not based on any percentage but rather a set dollar amount.

·         The fee charged is considered standard and customary for the area when compared to other third parties negotiating similar short sales contracts. (Determined by the underwriter at time of underwriting)

·         The lender has verified that the third party has no identity of interest with any other party to the loan transaction.  (Signed certification by all parties of the transaction stating such)

·         The lender has independently verified the legitimacy of the company/person charging the fee. (Copy of services with fee schedules of company/person, verification of website, directory assistance verification of phone number etc.)

 

 

 

John Longstreet, Loan Officer