laws about discounting realtors commission on short sales

Foreclosures, Short Sales, Tax Foreclosures
1

hey guys…under what type of loans or scenarios are banks not allowed to discount realtors commission on short sales?

2

There is no law on what Lenders pay the Realtor. The main thing is to pay the Realtor enough to keep them happy. It also depends on how much work the Realtor does on the deal. Example if I do all the paperwork and Negotiating I make sure the Reator gets paid at least 2% for there part. If I come accross a deal where the Realtor is doing the Negotiations then they get what they negotiate. If they don’t make enough that is there problem as I had no control over the situation. I have never seen the Realtor get paid under 2% generally its around 2.5%

3

Ryanpal - I’ll answer the question the way I understood it…

Fannie Mae cannot discount the Realtor commission lower than what is on the listing agreement, but they will not pay 7-8%, but they cannot require them to take less than 6%.

4

The HAMP regulations enforce a 5% commission, IIRC

5

thanks short sale girl…so if it’s a not a fannie mae loan, they can discount to 3% or even lower correct?

6

The majority will pay 5-6% if there are two agents. I have seen only twice where they made the agents take 4%, but nothing less than that with two agents.