Replies to This Discussion

Permalink Reply by Bryant Tutas on May 21, 2011 at 11:02am

It will probably be OK. Not much you can do but put it on there and submit it.

• ▶ Reply

Permalink Reply by Paul Aceto on May 22, 2011 at 4:46pm

Bryant. thank you for the response. I have recently received Freddie Mac's S.S. Addendum and it states:

 

The Parties acknowledge and agree that neither the Seller nor the Buyer will receive funds or commissions from the sale of the mortgaged premises.

 

This addendum will need to be signed by buyer and seller only and notarized at closing.  I wonder if buyer signed what the potential repurcussions could be.  This is if the lender approves the HUD with the credit on it.

Bryant Tutas said:

It will probably be OK. Not much you can do but put it on there and submit it.

• ▶ Reply

Permalink Reply by Brent Smith on May 24, 2011 at 4:24pm

Paul, I am also planning to credit the buyer with my commission to make the sale happen and Bank of America has sent the file for investor review and we are patiently awaiting a response. 

 

Since your sale is closing early, would you please let us know if Bank of America created any challenges with buyer agent credit to the buyer to maket the short sale successful?

 

As an fyi, during the negotiations between the buyer and seller, my buyer wanted to draw an amendment to the RPA stating that "buyer's agent to pay some of the closing costs." And the seller had signed the amendment.

• ▶ Reply

Permalink Reply by Paul Aceto on May 24, 2011 at 5:04pm

Brent. I have not yet submitted the final HUD. However, I spoke with the closing specialist from BofA today. She stated that BofA and Freddie do not care about buyer credits from their agents. I was relieved to learn this.

Keep in mind that Freddie Mac does have a s.s. addendum that sates: Neither seller nor buyer to receive any funds from the sale including commissions.

I now interpret this to mean that neither buyer nor seller can receive proceeds at closing or commissions if they are an agent.

That amendment may be required by the buyer's lender or underwriting.  B of A may not like the amendment but displaying it on the HUD should be sufficient.  

I think that you will be ok but you may want to include it on your initial HUD just to be sure. The s.s. addendum is below.

Attachments:

• Freddie Mac Short Sale Addendum.pdf, 42 KB

• ▶ Reply