MUST READ FOR ALL AGENTS THAT SELL SHORT SALES - KEEP THIS FANNIE MAE SERVICING GUIDE IN YOUR FILES AND ON THE WALL OF YOUR OFFICE.
More and more each day I run across exactly what Lenn mentions. I hope that the agents making these claims just don't know what they are doing and I hope that they are not intentionally trying to harm one of their own. I encourage us all to take Lynn's advice and report the offenders to help put an end to these violations.
SPREAD THE WORD
* * * * HARD CORE REAL ESTATE INFORMATION * * * *
THIS SERVICING GUIDE FROM FANNIE MAE CONFIRMS WHAT COUNSEL TO THE NORTHERN VIRGINIA ASSOCIATION OF REALTORS HAS ADVISED FOR MONTHS. . . . . . BANKS FOR SHORT SALE OWNERS MAY NOT LOWER YOUR COMMISSION.IF THE LENDER CONDITIONS APPROVAL OF A SHORT SALE ON A REDUCTION OF THE CO-OP OFFERED IN THE MLS, it violated Fannie Mae Guidelines.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
DATE: Wednesday, February 25, 2009.
No Negotiation of Preforeclosure Sales Commission
Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers
Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a
reduction of the total commission to be paid to . . . . . More.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
COPY THIS SERVICING GUIDE AND PUT IT IN YOUR BUYERS' FOLDERS.
COPY THIS SERVICING GUIDE AND HANG IT ON YOUR WALL.
COPY IT TO YOUR BROKER SO THEY CAN SPREAD THE WORD IN BROKER MEETINGS.
COPY IT TO YOUR LOCAL ASSOCIATION OF REALTORS AND SUGGEST THAT THEY DISTRIBUTE TO THE MEMBERSHIP.
- GET THE WORD OUT!
- GET THE WORD OUT!
- GET THE WORD OUT!
Counsel to the Northern Virginia Assn. of Realtors advises closing the sale and arbitrating the commission. Makes sense to me. No need putting a buyer's contract at risk. Get through the closing and then go after the listing broker.
WARNING!!! * * DON'T FALL FOR THE "50/50" CLAIM BY LISTING BROKERS * * . We see more and more listings with a so called disclaimer that the co-op offered may be lowered and the commission will be split "50/50". That violates our MLS rules and I report every single one I see. THE CO-OP IS WHAT IS OFFERED. If the listing agent tries to weasel out of paying it through averice or lack of knowledge of the rules, educate them or file arbitrate them after settlement. Don't put your buyer's contract in jeopardy. It can be done after settlement.
UPDATE: When I see a listing with 50/50 in the co-op field, I report it to our MLS provider. They contact the listing agent to make a correction. I have also been sending them listings wherein the listing agent includes in the REMARKS - "commission 50/50 as approved by third party" or some similar language.
THIS MORNING I GOT MAIL FROM OUR MLS PROVIDER STATING:
"The amount in the commission field is what the cooperating broker can expect to be paid. We are not prohibiting additional comments because they do not override the offer of compensation entered in that field"
SO, WHAT DOES THAT MEAN????? IT MEANS. . . . .
* * * What is included in the AGENT REMARKS is immaterial. What is offered in the co-op field is what is supposed to be paid. * * *
I sent my MLS provider a copy of the Fannie Mae announcement. They were doing it right, but perhaps they need to go farther than just know the right thing and get an announcement out to brokers.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.
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