In a short sale, has a bank ever not paid a commission to an agent representing a relative as a buyer? I had this happen to me today and I'm totally upset about it. The selling agent is telling me its a new bank policy.

Can anyone shed some light on this?

Each bank is different.They will find anyway to increase their net at closing. In our contracts it has a provision where you have to disclose any material relationship you have with the seller or buyer in a transaction.

What you should have done is explained this to your broker and have them write up the contract so the bank can't use this tactic. You have to be one step ahead of the banks and out think them.

If you haven't accepted an offer have your broker write it up for your buyer.

OC, where in the process are you? offer accepted? I have never heard of this but you should work out a contract whereby the bank cant get out of it. Worse case scenario, get the referral fee.

The offer of compensation as entered in the MLS is an agreement to pay. If there are exceptions it should have been signed off at the time of contract by your broker (the MLS agreement is broker to broker). Let the listing brokerage know that you expect to be paid the commission as offered in the MLS and if you aren't paid at closing, your broker will file with the local board or MLS and you have a sure fire win.

Ditto to what PA Roadkill said. I had an agent tell me that the bank would not pay me, as the agent representing myself when buying her REO listing. Said nothing in the MLS to this effect. My BIC laughed and said to not worry you will be paid since she left out this important info in the MLS.

I also had the same thing with a purchase of mine, instead of dancing around wasting time arguing with them, I simply said that I changed my mind and was going to have another of my offices agents represent me. She knew where I was going with that and the whole issue went away quickly.

Thanks for all the responses.

I made sure to tell the seller's agent at the beginning that I was her sibling. I even e-mailed him to ensure of that I had a record of doing this. At this point, the offer was accepted and just waiting for the bank's approval. No where was this provision in the MLS listing and it only came up with them seeking the bank's approval.

I was so shocked when I heard this. Then again, not so much with these banks.