I have been looking with my buyers for a few weeks. A few days ago I ran across a new listing that seemed to offer everything that they are looking for. The property was being offered by a Fannie Mae Homepath agent that I closed two transactions with last year. I knew my people would be very excited about this home. As I looked further I noticed that the A2A remarks stated that all offers on this property had to go through www.Realtybid.com
My clients loved the house. As I looked into placing the bid I realized a few alarming facts...
•1. Right off the bat a 5% premium would be added to my clients offer and thus the final bid amount. It was called an "Internet Transaction Fee" $2000 or 5% of the purchase price whichever was greater.
•2. Although my clients planned to finance the property the purchases would notbe contingent on financing and if the financing falls through the 5% or $2000.00 would not be returned and would be used to cover damages.
•3. The seller would not assist with any closing costs
•4. Buyer agent Commission would be 1%
I am amazed that Fannie Mae would deal with a company that clearly does not have the best interest of the consumer in mind. The premium is clearly a profit source that does not serve to benefit the consumer in any way. As agents we need to make sure that we are making our clients aware of sites like this and the potential for them to lose their hard earned money. This is especially relevent since I have read that several lenders are planning to offer their REO properties though this site or sites like this one.
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