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Dual agency restrictions for FHA short sales to be removed

Reblogger Steven Cook

Industry Observer with No Longer Processing Mortgages. MLO #293441 expired

September 26, 2013 02:03 AM

Roy Kelly is helping keep us up to date with the FHA Short Sale rule changes. They were going to create some real problems in that area - to their own detriment, in most people's minds - and have backed off their plans.

Dual agency restrictions for FHA short sales to be removed

Real estate professionals had previously been advised that the U.S. Department of Housing & Urban Development would be implementing a new policy on October 1, 2013, that would prevent dual agency agreements in FHA short sale transactions.

The National Association of REALTORS® had successful talks with HUD about the negative impact of this policy. According to NAR, HUD has agreed to reissue the Mortgagee Letter with the removal of the dual agency language. HUD had proposed the policy change in response to fraud and abuse detected by the HUD Inspector General in the pre-foreclosure sales process.

Watch for updates on HUD policies that may impact FHA short sale transactions.

Chrysanthemum, Brookside Gardens IMG_7878

Roy and Dolores Kelley Photographs

We represent home buyers and sellers as their exclusive agents in the Maryland suburbs of Washington DC.

Roy Kelley
Roy Kelley & Associates
Associate Broker, RE/MAX Realty Group

Client Assistance: 301-670-8996

Recipient of the RE/MAX International Lifetime Achievement Award - 2008

Comments(6)

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Roy Kelley

Retired - Gaithersburg, MD

Thanks, Steven, for the re-blog.

Have a great day and an outstanding weekend.

Sep 27, 2013 04:33 AM

Rene Fabre

ARFCO Media - Renton, WA

Practicing Philosophical Eclectic of the Arts

Hi Steven! I'm a fan of Roy's, but missed this post. Great news! Thanks for sharing it!

Sep 27, 2013 06:04 AM

Steven Cook

No Longer Processing Mortgages. - Tacoma, WA

Roy -- Glad to do it -- this is important information. Too bad it is so close to when they were going to implement it.

Rene -- Only reason I caught it, was that he had mentioned something about it in blog the other day, and I had commented on it, and went back to check on any reply and found notice of this new post.

Hope you each have a great weekend!!

Sep 27, 2013 06:08 AM

Nick T Pappas

Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL

Madison & Huntsville Alabama Real Estate Resource

Steven, I recently read about this, I understand HUD's reasoning, but am glad they apparently have reconsidered.

Sep 27, 2013 12:29 PM

Nick -- it might have worked 50 years ago when nearly every realty office was locally owned and operated, but with the branch system and franchising and other changes, this probablly would not have resulted in good sales numbers for them. Now to await how they will revise it.

Sep 30, 2013 05:39 AM

Maria Gilda Racelis

Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT

Home Ownership is w/in Reach. We Make it Happen!

I would think that there would be more incidence of fraud and abuse in a dual-agency situation. The author should keep us updated as I would certainly like to be informed.

Thanks for the reblog.

Oct 14, 2013 09:25 PM

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Steven Cook

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