Petition to Prohibit Lender Cutting Real Estate Commission as a Pre-Condtion to Approval of a Short Sale Contract.
40 Letters and Emails Sent So Far
In March 2009 Fannie Mae issued a Directive prohibiting loan Servicers from reducing real estate commissions from less than the negotiated rate unless that rate exceeds 6%. This Directive applies only to Fannie Mae loans. This Petition requests the Congress to enact laws and the White House to adopt regulations that prohibit lenders and mortgage loan servicers from requiring Realtors to reduce a real commission to a fixed amount or percentage rate acceptable to by a lender or servicer as a pre-condition to obtaining approval of a short sale payoff.
The Petitioners request a uniform prohibition of such conduct by banks and mortgage loan servicers.
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I just now heard from a 2nd lienholder on a Freddie Mac loan that they would not approve the short sale if there was more than 5% total commission in the transaction to the 2 Realtors involved. This transaction has been a year of hard work marketing and getting a solid buyer to this point!
TD Bank said they would not approve the short sale if I didn't reduce my commission to 5%. These transactions take a phenomenal amount of work and the commission is determined and agreed upon between buyer and broker - not the bank.
I've had success with BofA. They will not cut your commission if you ask for 6%. They may try to counter it but, if you refuse to accept, they will pay it. The Counter Offer Worksheet defaults to 5% so be careful! If you miss it you may be cutting your own commission!
I refuse to write on any more BofA properties, will not list BofA properties, they are screw the agents and the buyers/sellers. The government is not doing anything to stop this. NAR is not doing anything to protect its realtors either, we are all alone like dogs!
Can we have this apply for all loan types?
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