Saxon Mortgage - another one that doesnt get it

[Andrew Meegan]

so i have a good realtor friend that just called me to discuss some frustration he has experienced with saxon mortgage. he has been jumping through hoops trying to get a short sale done on a property for about 7 months now. he lost one buyer cause of their insane process at 350 on the property 4 months ago.

now today after finally getting saxon to accept 330 on the same house, they inform him that they wont pay 5% realtor wages, they will only pay 4%. so just cause he has extended so much effort and his 5% wages have been in the mix since last september, he told them to go pound sand, and saxon seemed all to comfortable with the idea of foreclosing on the house. the girl says to him, "you are willing to walk away from all this over 1%?" he said back to her, "youre the one who would rather foreclose and take a much much larger loss on the house then to pay me for my efforts."

i guarantee that this house gets listed for $300,000 or less with a 6% realtor comp in a few months.

now, im not the kind to walk away from money when work has gone on this long. this realtor is, but only cause its a matter of principals. also, to confirm this side of the story, this is a competent realtor who is pretty much the only realtor i know that has actually squeezed off a bunch of short sales. hes not the kind to approach this process the wrong way.

i got to ask, are the people at saxon striaght up stupid? i just dont see any normal behaviour that exhibits a willingness to move on from their messes. this house will be on the market another year, i guarantee. what are the costs of foreclosing? holding costs? cost of depreciation? listing it at point down the road, even at 330, after foreclosure is stupid and will bring a much much larger loss then selling it right now for 330 w 5% to the realtors. lame