Saturday, September 26, 2009

Give Us Your Commission - Or Else - Extortion by Short Sale Loan Servicer

The public needs to know what is going on....

The "gentleman" from GC Services, started out saintly and well-mannered. But by the time we were through, he had ordered me to "Acknowledge" him when he spoke and "give him my money". Here is my story.....I received approval from Wells Fargo, the senior lien, for a Destin area short sale. The junior lien, Chase, is being handled by GC Services, a collection agency. On this particular loan type, Chase is required by the investor to outsource the short sale and collections.

The junior balance is $40,000. GC Services wants $13,000 to release its lien. I got them a whopping $10,000. $3,000 from Wells Fargo, $1,000 from the seller, and $6,000 from the buyer.

The "gentleman" from GC Services said that $10,000 was not enough. To make up the other $3000, he said I was to "take x% of the full commission Wells Fargo was paying", and give that to him.

Not believing my ears, I told him I wasn't "quite sure I understood" what he was saying. He then said I obviously did not understand HUD's, and that page two was to state a y% to me, and page one, x% to them. I said simply,


The "gentleman" then stated that "if I refused, and the buyer made up the additional $3000, they would still not issue an approval" unless my commission was cut to x%. This is similar to putting your hand in someone's wallet and pulling out the money, while holding a gun to their head. I called my seller. I told her I was sorry, but "the commission cut was not allowed by our listing addendum" and explained the strong arm tactic. She understood and agreed. The sale is off. I refuse to be threatened and forced to "give" someone part of my paycheck. Would you?

(**** This decision was made with the consent and permission of the seller. The seller is a friend of mine and is perfectly happy with this negotiating tactic. We have no intention of letting this property go into foreclosure. We do however intend to stop the extortion.)

It's Wendy!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: [email protected]

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