Hey Everybody, I just received an email a couple minutes ago about the latest Short Sale changes over at Fannie Mae from my friend Josh Cantwell (check out his blog in my Blogroll to your right) Anyway…they are changing the regulations about short sales and realtor commisions. The banks will no longer be able to cut Realtor commisions as a part of the negotiations, as long as the fee doesn’t exceed 6% (Sorry Iowa Realty agents). Make sure if you are in negotiations, that you let them know where to find it and walk them through it. Many times the negotiators aren’t exactly up to speed themselves and could use a refresher! Here is the information and link:
No Negotiation of Preforeclosure Sales Commission
Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers
Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a
reduction of the total commission to be paid to real estate agents to a level below what was
negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales
price of the property in aggregate. Servicers are reminded that they must continue to obtain
any approvals that may be required by interested third parties in connection with preforeclosure
sales.
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0903.pdf
