Short Sales: Commissions Won't Cover Negotiators

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The U.S. Treasury Department in revisions to its short-sale guidelines has made changes to the way short sale negotiators or other vendors hired by the mortgage servicer are to be paid. Instead of being paid from the real estate commission, they will be paid from the sales proceeds or by the servicer outside of the sales transaction. Those options represent a significant improvement over previous provisions. But in a move of concern to NAR, the guidelines provide for the servicer to specify the allowable commission rather than maintain the commission as stated in the listing agreement. NAR will be raising concerns about this change with Treasury officials. The short sale guidelines, which implement the government's Home Affordable Foreclosure Alternatives (HAFA) program, take effect April 5

information courtesy of RAMB

I wanted to add my 2 cents ~ I think that there needs to be additional provisions by the Obama administration to curtail the banks retaining the right for deficiancy judgements. Many people are opting for bankruptcy rather than the short sale option, which has greater impacts on their lives. I don't think realtors should be doing the paperwork for short sale negotiations its not really in their arena of expertise and for many it's a time consuming laborious clean up job. With outside negotiator fees not being met by the banks this is once again going to fall to the realtors and real estate professionals to clean up.

Comments (1)

Richard Strahm
American Foursquare Realty - Lansdale, PA
Lansdale and North Penn Real Estate

It seems as if they are beginning to see the light.  NAR is doing a good job!

Mar 26, 2010 01:24 AM