As delighted as I was over the announcement a while back that Fannie Mae short sales will pay full commissions on my Sacramento short sale listings, there seems to always be a twist in this business. It comes with the territory of being a Sacramento short sale agent.
Sacramento short sales are always on my mind. But this morning, I am thinking about my home state of Minnesota. Pondering whether Princess Kay of the Milky Way will get her head sculpted in butter for the Minnesota State Fair this year or whether Fair officials may opt to carve a hunk of butter into a likeness of Michael Jackson, like the organizers of the Iowa State Fair are planning.
I'm wondering how Senator Franken feels after his 8-month battle to take over Senator Coleman's seat. If victory tastes sweet or somewhat bitter after the long struggle. Will Franken make a difference as the 60th Democratic senator in Washington, giving Democrats the majority vote?
But reality snaps me back to the present. I've been working on one of my Sacramento short sales for 2 months when suddenly the lender announced it was outsourcing the file. The loan is held by Fannie Mae. It also is insured through PMI, which ordinarily isn't a problem. Typically, it just takes longer.
In this instance, a third-party vendor called yesterday to cheerfully announce that Fannie Mae will approve a full commission. In the same breath, she said her agreement with the short sale bank allows her to collect 1% of the sales price as a commission, on top of a $250 administration fee. This is like an REO lender hiring an asset manager to handle foreclosures. Both dip into the listing agent's commission.
The main difference is foreclosure agents handle a huge volume to absorb the hit while short sale agents typically do not.
It's bad enough that short sale banks try to cut agent commissions, but this development removes all incentive to treat Fannie Mae loans in a preferred status, plus it dings short sale agents' pockets even further. Pretty soon we Sacramento short sale agents may be paying the bank for the privilege of producing a short sale buyer.
Oh, wait, we already are.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions.
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