Take notice guys!
* * * * HARD CORE REAL ESTATE INFORMATION * * * *
THIS SERVICING GUIDE FROM FANNIE MAE CONFIRMS WHAT COUNSEL TO THE NORTHERN VIRGINIA ASSOCIATION OF REALTORS HAS ADVISED FOR MONTHS. . . . . . BANKS FOR SHORT SALE OWNERS MAY NOT LOWER YOUR COMMISSION.IF THE LENDER CONDITIONS APPROVAL OF A SHORT SALE ON A REDUCTION OF THE CO-OP OFFERED IN THE MLS, it violated Fannie Mae Guidelines.
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DATE: Wednesday, February 25, 2009.
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 . . . . . More.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
COPY THIS SERVICING GUIDE AND PUT IT IN YOUR BUYERS' FOLDERS.
COPY THIS SERVICING GUIDE AND HANG IT ON YOUR WALL.
COPY IT TO YOUR BROKER SO THEY CAN SPREAD THE WORD IN BROKER MEETINGS.
COPY IT TO YOUR LOCAL ASSOCIATION OF REALTORS AND SUGGEST THAT THEY DISTRIBUTE TO THE MEMBERSHIP.
- GET THE WORD OUT!
- GET THE WORD OUT!
- GET THE WORD OUT!
Counsel to the Northern Virginia Assn. of Realtors advises closing the sale and arbitrating the commission. Makes sense to me. No need putting a buyer's contract at risk. Get through the closing and then go after the listing broker.
DON'T FALL FOR THE "50/50" CLAIM BY LISTING BROKERS EITHER. We see more and more listings with a so called disclaimer that the co-op offered may be lowered and the commission will be split "50/50". That violates our MLS rules and I report every single one I see. THE CO-OP IS WHAT IS OFFERED. If the listing agent tries to weasel out of paying it through averice or lack of knowledge of the rules, educate them or file arbitrate them after settlement. Don't put your buyer's contract in jeopardy. It can be done after settlement.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.
Chip Jefferson
Laura,
We have a real estate team in Indianapolis besides owning my mortgage company. I am so glad you posted Lenn Harley's cooments about Fannie's servicing guidelines relative to agents getting screwed at thelast minute. We advise the listing agent and our buyers in writing that we will not accept commission reduction at the last minute. What's worse is the seller having to amortize the shortfall to the investor when due diligence shows that the seller has no assets and can hardly make ends meet. I envy you living in South Carolina. I am a Clemson Tiger.
William