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In another day and time...
.... not long ago, in the run-up period leading to the go-go years of 2005 and 2006, when the insatiable needs of the hoardes of buyers ran over any semblance of regard for economic prudence, a few audacious firms introduced the concept of "processing fees".
These were "junk fees" ranging in price from $250 to as high as $500, attached to settlement documents, (often without clear notice given to the buyers or sellers) which had the effect of enhancing the broker's net from each transaction, at the expense of the principals involved.
These fees were over and above the commissions the firms duly earned.
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Nobody seemed to mind.....
....so a few more firms joined in, and soon it became common practice in the industry. Three to five hundred dollars didn't seem like such a big deal to the buyer, who often was just glad to get the home of his dreams, and so the practice continued.
But these are different times, to be sure. So, incredulous though I was, I asked the processor: "Do companies still ask for these fees"?
She assured me, in fact, they do. She went on to say that my company was one of the very few she has encountered ever who do not include these charges at the table.
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