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Francesca Patrizio's Blog

By Francesca Patrizio | Agent in Monmouth County, NJ

SHORT SALE COMMISSIONS Non-negotiable

Good news for a change. On August 20, 2009, Freddie Mac confirmed in writing that its servicers are not allowed to renegotiate short sales commissions. According to the policy, as a condition of the servicer’s acceptance of a short sale offer, servicers cannot renegotiate the sales commission below the amount agreed to by the real estate broker and the seller/borrower. However, if the negotiated commission exceeds 6 percent, servicers are required to limit it to 6 percent. This Freddie policy is consistent with Fannie Mae’s policy.

(excerpt from NAR's Government Affairs Division)

Comments

By Jeanne Feenick (908) 337-0943,  Tue Oct 13 2009, 08:40
This is good news - I hope it is immediately effective!
By Francesca Patrizio,  Thu Oct 15 2009, 06:31
From what I have read . . . yes, effectively immediately . . . . but, frankly, I believe it is up to us Realtors to hand them the literature on the legislation at the outset of a short sale negotiation as I doubt many of the banks are acutely aware of this change.

Currently working a Wachovia SS, will repost with my experience.

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