A bit new to short sales. I have two questions.

1. On average, how long does it take to get a response from the bank?

2. How secure are the commissions?

I submitted an offer last night for the full asking price with seller(bank) to pay all closing costs. I let my clients know that when submitting an offer on a short sale, it can take weeks just to get a response. Another thing is the commission. Listing agent is offering 3% broker co-op but I'm told the lender decides what the commission split will be? Of course, I submitted the offer with the Cooperating Broker compensation form.

Since the bank is taking less than what's owed on the mortgage the bank decides what commission they will pay out.They have been paying 5 and some 6 but now alot of them are paying 6 as these are piling up on the loss mitigators desk.

1.There is no average each bank varies in size and the number of loans they have in there portfolio,it also depends on how close the loan is to foreclosure,the loan might not be a big priority to the lm to take a lower offer if they have months to wait for a better offer before it forecloses.

2.If a bank sends an approval letter for the contract they will list specifically what shows up on the HUD-1 commissions etc.
Sometimes the bank will not pay closing costs,in that case the buyer has to bring the funds to closing or have th ebank up there interest rate to roll in most of the costs minimizing what they bring to closing.If the listing agent didn't put in the mls remarks commission subject to bank approval you are now getting 3 and they will only get 2.I always have it in my listings that commission and sales price is subject to bank approval and have in my listing agreement with the seller that they agree to pay 6.0 percent 4 to me and 2 percent to the co-op agent then if the bank agrees to 6.0 I will give the co-op agent 3 and me 3.If it's five i get 2.5 and the co-op get's 2.5.

Print off the MLS sheet showing the coop. Check your MLS rules. Unless you agree to a reduced commission the broker owes you what the broker committed to. If they offer 3% they have to pay 3% regardless of the total commision payed by the lender. I know because I got the shaft on one.

Short sales can take 30-45 days depending on the lender. Make sure you fax everything they ask for and then follow-up with a phone call. They will not go over the file if they are waiting for something, nor will they call you. i have often asked for a supervisor because these reps could care less about us getting paid and have an attitude.

Super Realtor: Is your market such that you are getting showings offering 2% to the buyer's agent? In my market we can't generate any interest in a property unless we offer at least 3. I'm in the midst of an ugly short sale where the negotiator is refusing to go above 4 and tells me that agents all over the country are doing these for 4%. I'm wondering what the going rate is, especially in states with high foreclosure rates.

Hard to say in your specific situation.There is no set number on the commission.Most co-op's I am seeing in my area pay 3.0 to 3.5,some rare instance you will see a 4 or a 2.5(usually an REO)

Now when it's a short sale most servicers-banks will pay out a total of 5 to 6 percent IF there are 2 agents involved.If there is just the listing agent or buyers agent involved they will only pay up to 4 total and then usually just 3 percent.You will never get 6 percent on a short if you are the listing agent and you are helping the buyer as well.The seller signed a contract with you the listing agent for 6 percent but good luck on getting that difference because the seller has no money.