Fannie Mae just released new guidelines – effective March 1, 2009 – affecting short sales. These changes are very much welcomed by any Realtor who has been pressured to reduce his/her commission on a short sale:
“Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers Effective March 1, 2009, closing of pre-foreclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6% of the sales price of the property in aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with pre-foreclosure sales.”
* Note that this only affects Fannie Mae mortgages and not all mortgages or short sales. Only applies to the process established by Fannie Mae, not to real estate auctions.