Friday, February 27, 2009 @ 3:08:00 PM - Written by Ryan Vaught
Of course we are not in real estate for the money. But eventually we need to get paid, so we can continue to help our clients. Here is some great news on short sales commissions.
Have you ever negotiated a short sale for several months, and actually didn't get paid? I know I have done many short sales for free, because after all is said and done, the Bank decides to reduce or eliminate your commission. On several more short sales, I have gotten a small check equivalent to only a few dollars per hour.
Fannie Mae loan servicers can no longer require real estate brokers to reduce their commissions as a condition to a short sale approval. This new Fannie Mae policy takes effect on March 1, 2009. According to Fannie Mae, the closing of a pre-foreclosure sale cannot be conditioned upon a reduction of the real estate commission to a level below what the listing agent and borrower negotiated. An exception applies if the total commission is more than six percent of the sales price.
This good news may be tempered by the difficulty for REALTORS® to ascertain whether the underlying loan in a short sale transaction is a Fannie Mae loan. But at least there is a bit of light at the end of the tunnel.
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