Hi Everyone,
Here are the follow up questions and answers from class today. You all worked very hard this morning!
Here’s the Statement of Charges on Hellickson….and look at the news story just breaking this evening on the Hellicksons.
Somebody also asked for a link to the article on Shawn Portman
Here is a link to the HAFA website.
We wanted to follow up on the announcement regarding commissions on a short sale if the home loan is held by Fannie Mae. See page two of this PDF:
Effective March 1, 2009, closing of preforeclosure 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 percent 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 preforeclosure sales.
So what about Freddie Mac? The National Assoc of Realtors put together a working group and has been talking with Freddie Mac to match Fannie Mae’s guidelines on commission but of this date, we have not received written confirmation from Freddie Mac. There’s apparently a podcast out there with the current NAR president saying that he’s secured Freddie’s commitment to match the commission promise but I cannot locate a press release to confirm.
Here are two articles I recently wrote about third party short sale negotiators. Enjoy.
Predatory Short Sale Negotiators
and
21 Questions to Ask Short Sale Negotiators Before Hiring Them
Here’s a link to the IRS website explaining the Mortgage Forgiveness Debt Relief Act; who is and is not exempt.
Here’s the NAR press release on a proposed bill to mandate a shorter approval time on short sales.
And finally, regarding Short Sale Negotiators, the NWMLS Rule Jeannie mentioned is Rule number 11(b)(vii) from Legal Bulletin Rule Revisions Effective July 1, 2010 by the NMLS dated June 1, 2010. See page 2:
“Short Sale Negotiators
Similar to the auction issues, NWMLS has received numerous complaints and questions about short sale listings where the seller expects the buyer to pay a third party short sale negotiator. Selling agents and buyers are often caught by surprise when, after submitting an offer, the seller delivers a counteroffer that obligates the buyer to pay a fee to a third party. To eliminate that surprise, new Rule 11(b)(vii) requires the listing member to disclose in the Agent Remarks if the seller requests that the buyer pay a fee to a third party, the amount of the fee, and the identity of the third party. The Rule also requires that the listing member submit a “letter on file” from the seller detailing this restriction. The new rule provides:
(b) Restrictions Permitted Only if Signed Seller’s Request is Obtained in Advance. The following restrictions on showing and sale shale be noted in the listing and the listing member must obtain seller’s requet before restriction is imposed…
(vii) The seller requests that the buyer pay a separate, lawful fee to a third party, such as a short sale negotiator. The listing must set forth the seller’s request, the amount of the fee, and the identity of the third party.
While this request to pay a fee to a third party will most often relate to short sale negotiators, it also applies to any fee that the seller requests that the buyer pay to a third party.”
Hmm. Interesting. I wonder if this rule ALSO applies to bank-as-seller REO transaction whereas the bank tries to make the buyer pay many things traditionally paid for by the seller in WA State.