Freddie Mac puts short sale commission policy in writing

From NAR: Freddie Mac has confirmed in writing a policy about renegotiating commissions.

Here’s the exact wording from Freddie Mac, as released in Bulletin 2009-22, available for download on their Web site.

Unless a real estate broker’s sales commission exceeds 6% of the property sales price, Servicers must not, as a condition of the Servicer’s acceptance of an offer, renegotiate the real estate broker’s sales commission to an amount that is lower than the amount that was originally agreed upon between the broker and the Borrower. In the event the sales commission exceeds 6%, the Servicer must renegotiate the commission to limit it to 6% of the property sales price.

Watch this video with NAR Government Affairs staff for more information and an update on potential regulatory changes to the for short sales process on the horizon.

VAR special counsel Lem Marshall says it all the time: Stand firm on your commission and you’ll get what you’ve rightfully earned working these treacherous transactions.

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2 Responses to Freddie Mac puts short sale commission policy in writing

  1. Doug Francis says:

    I had a short-sale at the end of July where the bank came back and said the commission was less, all on the day of settlement. My buyer client was getting an FHA loan, we were at the expiration date, I asked the listing agent to challenge it, and they said too bad, take it or leave it. I got paid… but $2,500 less than agreed and I’m still mad.

  2. Doug, you are a good man. You have every right to feel angry, but you were good to go ahead and close it.

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