21 Apr 09 New Short Sale Fannie Mae Rule
Welcome back!
In 2007 realtors started seeing ’short sales’ become more prevalent in the South Florida real estate market. However, most realtors were confused with the short sale process and how to close one. By the end of 2008, most top producing realtors started to understand short sale transactions and close some. However, the one negative aspect of the short sale was the reduction of commission by the lender. Many realtors would avoid short sales altogether because of this simple fact. Working on a short sale is a long process and can take up to 90 days to close, or even worse not get approved by the lender altogether.
As of March 1st, 2009 Fannie Mae issued an announcement that closings of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid 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.
This is great news to any realtor working on short sales where the lender has a Fannie Mae loan. It is great to hear that lenders will honor a realtor’s commission to remain whole for their hard work.
Bill
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