Fannie Mae just announced a new policy regarding pre-foreclosure short sale transactions that is effective March 1, 2009. The policy provides that the closing of a pre-foreclosure short sale involving a Fannie Mae loan may not be conditioned upon reducing real estate brokerage commissions to a level below what the listing agent negotiated with the seller, unless the fee exceeds 6 percent of the sales price.
This new policy applies to those short sale transactions where the seller is delinquent in paying his or her mortgage and are in “pre-foreclosure.” The official announcement is available at the Fannie Mae website.
This is great news to agents who have been working with buyers who are interested in these properties. Agents do a good deal more work to make thee types of transactions work and deserve to get paid. Furthermore, with the slower market most of us agents are having a difficult time, just like everyone else in this market.