Fannie Mae has announced effective March 1st, 2009 New Policy Changes which prevent modification of Commissions by lenders as a condition of approval on pre-foreclosure sales… (Short Sales)
Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers Effective March 1, 2009, closing of pre-foreclosure 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 pre-foreclosure sales.
This is great news for the professional REALTOR and I wanted to pass it along.
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Consumerism, Geo-mapping columnist
Marketing columnist
WOW Thanks for this information. We have a whole short sale department that works 10x as hard as a regular listing and gets 5% or less for it. This is great news!
This was inevitable. If Fannie/Freddie want access to the MLS, they had to stop conditional offers of cooperation. All MLS’s which operate under the NAR guidelines mandate unconditional offers of cooperation for the payment of commissions between brokers. All the listing broekrs which have gotten into bed with Fannie/Freddie(kinky, huh?) would have to pull their listings from MLS or go broke.
Thanks, Russell, for posting the document link. I think this is a huge step toward moving more of the short sale inventory, as most buyer’s agents were avoiding these sales for fear of having their commission chopped.
You Da Man for sharing this diamond. Thanks.
Russell – I received this from another source last week – but man I just can not do these articles justice without your creative graphics.
I’m excited to see this, I can now offer buyers agents what they deserve for the stress of working a short sale, without a stipulation that their payday may be less than they bargained for.