One of the most difficult transactions for a Realtor to close is a short sale. Yet lenders have frequently required the agents involved to reduce their commissions in order to close the sale.
Fannie Mae loan servicers can no longer require real estate brokers to reduce their commissions as a condition to a short sale approval. The new policy was effective March 1. According to Fannie Mae, the closing of a pre-foreclosure sale cannot be conditioned upon a reduction of the real estate commission to a level below what the listing agent and borrower negotiated. An exception applies if the total commission is more than 6 percent of the sales price.
This good news may be tempered by the difficulty in determining whether the underlying loan in a short sale transaction is a Fannie Mae loan. Often the loan servicers themselves don't know.
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