RealTown's RealTalk

WOW!!! Thank you, Lou...... that is good news.
And how refreshing to see they are using common sense.
Many Realtors, like me, simply didn't want to play that cat & mouse game... too much hard work for very little compensation.

Many first time buyers do not have the funds to pay their Realtor's commission, so that meant they were unable to buy ShortSales, and if they weren't able to augment the commission or pay the entire commission (sometimes for BOTH agents), they had to ignore all those ShortSale listings. Since I knew that I would be pressured to cut my commission "to make the deal work", I have avoided ShortSales like the plague.

Good thing that FannieMae now understands that we Realtors can be part of The Solution, and should be not be treated as an interfering enemy.

This looks like a step in the right direction, let's hope it works.
Thanks very much for sharing this info....
Lindy in Houston

A Good Credit Score is 700 or Above. See yours in just 2 easy steps!

The following came from our Association yesterday, Has anybody else heard
this or know about it
FANNIE INSTRUCTS ITS SERVICERS NOT TO CUT COMMISSIONS ON SHORT SALES
On February 24, 2009, Fannie Mae sent Announcement 09-03 to its servicers
instructing them not to negotiate commissions on short sales below the
amount negotiated by the listing agent (unless the commission exceeds 6
percent). The requirement took effect March 1, 2009. Fannie Mae recognizes
that (a) negotiating commissions for short sales is unfair because getting a
short sale to closing requires intensive work over many months, often
requiring working with numerous buyers, and (b) compensating real estate
agents fairly benefits Fannie Mae because agents play a crucial role in
short sales. The Announcement reminds servicers that third party approvals
(i.e., private mortgage insurers) may be required and can affect
commissions. NAR has asked both Fannie Mae and Freddie Mac to strengthen
their policies against reducing short sales commissions, welcomes Fannie's
announcement, and has urged Freddie to follow Fannie's lead.
Lou Frey

---

An almost identical notice was sent by the Rhode Island Association of
Realtors yesterday... I was about to post it when I read your post...

Have a great day!

Best regards,

Paul Silver
Focus Professionals, Inc.

Hey Lou this is great news!!

FANNIE INSTRUCTS ITS SERVICERS NOT TO CUT COMMISSIONS ON SHORT SALES...

So let me ask the group, being there are Listing and Buyer's Agents out there to benefit from this windfall that appears to be in everybody's favor. As a Listing Agent would the banks be opposed to me charging 6% in exchange for a $50 selliing fee? I figure if the buyer has their own representatve they can offer less and pay their own agent out of their pocket. That way it's a win win for the buyer and the buyer's agent. And I'm more than willing to contribute 50 bucks to an agent who could care less about my client the OWNER. Besides if it's a "short sale" there is NO EQUITY, right? We are talking about "short sales" aren't we? You see I figure if I could collect a 6% commission less $50 bucks and the buyer's agent could fleece their buyer for a more reasonable commission I can make up for all the losses from the BPOs that didn't pan out over the past several years of market correction! This sounds pretty big of Fannie and Freddie to be so cooperative at a time when losses are not in anybodies interest. I'm sure all you guys and gals remember those loss mitigartors that told you, "you may get a listing in exchange for a BPO! REMEMBER? Besides I've lost so much money in this market, I have to do something to make up for the losses or is this offering the sacrificial part our President was talking about when he addressed congress a few weeks ago? I'm sure glad that Fannie and Freddie are looking out for us Realtors! I knew they had a heart for negotiations after all. Besides I want to conttribute by being the next one who earns $250k this year and next year to help out the economy. It's my duty to make as much money as it takes to pay for Trillions and Trillions of "thin air" dollars being pumped into the system. I just wanted to get everybody's take on this Wind-Fall we can all take advantage of. I can't wait to be a solution instead of the problem. How stupid of Fannie and Freddie to not see something like this sooner, right? Now we can all head for easy street. 6% commission on dumpy properties less $50 selling fees.

Commission is always a sensitive issue. Does anybody has any idea how often lenders reduce the agent's commission?

Obviously Short Sales always carry more work than a conventional sale. Everybody knows that. Buyers are not interested in Short Sales because of all the hassles and uncertainties involved in dealing the lenders. Securing any buyer is very difficult at the current depressed market, not to say a Short Sale Buyer. In my opinion agents should be rewarded with a higher commission.

After all, bankers and bankers. If they know what they are doing we won't be in the situation we are in.

A Good Credit Score is 700 or Above. See yours in just 2 easy steps!