Even Fannie Mae May Now Realize, You Get What You Pay For!

In a move toward a little sanity in the Real Estate Marketplace real estate commissions are now protected in some short-sale transactions. In response to Realtor concerns, Fannie Mae announced that "preforeclosure sales may not be conditioned upon a reduction of the total (real estate) commission," providing the total commission does not exceed 6 percent. The policy became effective March 1.

I will put a link below to the new Fannie May Guidelines. Why is this good news for ALL concerned? Well make no mistake, Short Sales are HARD WORK, taking typically 3 times as long as an average real estate transaction AND probably ten times as much time when done RIGHT.  You need someone who is willing to negotiate with your lender or lenders and is working hard to try to get the property sold prior to foreclosure and get the seller the best possible terms, satisfactions ideally, in working out the short payment with the lenders. 

Somehow banks had decided the Realtor was one more spot they could reduce their "haircut" and many do try to make acceptance of the sale contingent on the realtor cutting their take on a deal they need to put so much added time into.  Doing that leaves home sellers, particularly where the sale price is low, vulnerable to incompetent or unscroupulous practictioners as those who are best at doing this want to abandon the low end knowing their compensation, already low, would be cut.

We find it takes as much work to do a $100,000 Short Sale as a $3,000,000 one and once you cut the commission from 6 to 5 or 4.5 on that $100,000 sale - you just may not be able to afford to give it the attention it deserves. It's nice for one to see the value of this hard work recognized.

- Mike W.

https://www.efanniemae.com/sf/guides/ssg/2009annlenltr.jsp?referrer=frpromo