Short Sale Commissions Between Broker & Seller
Short sales make my skin crawl. Not because of the question of commissions which is the subject of this post, but because lenders are generally bitter, angry, and unmovable when it comes to making a common sense decision. I grow weary of the six month wait to see if a short-sale is going to go through or not. I grow weary of the flippant, arrogant attitude that is conveyed by banks. We know you have it hard, but dang it… so does everyone else right now. We’re in this together so just try to make the best of it.
Meanwhile, back at the Bat Cave it appears that lenders were trying to dictate the commission that it would pay through short sales. Fannie Mae, however, took a step back and said, “Whoa mule. Slow down here.” Here’s the official Fannie Mae stand on commissions when a short sale is involved:
In discussions between NAR and Fannie Mae, Fannie Mae has reconfirmed its short sale commission policy and established a process for REALTORS to follow if issues arise. On February 24, 2009, Fannie Mae sent Announcement 09-03 to its servicers instructing them not to negotiate commissions on short sales below the amount negotiated by the listing agent, unless the commission exceeds 6 percent. The Announcement reminded servicers that third party approvals (i.e., private mortgage insurers) may be required and can affect commissions. In response to concerns raised by NAR that some servicers of Fannie Mae loans are unaware of this policy or believe it is not binding, Fannie Mae has established a process for NAR members when short sale commission issues arise.
The steps include determining whether the loan is owned or guaranteed by Fannie Mae, which you can do here. Or you can call 1-800-7FANNIE. After this, if the lender is in contention with the policy give them a copy. Finally, if the dispute isn’t resolved, contact Fannie Mae at the number above with the property address, owner name, and Fannie Mae loan number - or email them at resource_center@FannieMae.com.
May the force be with you.
