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Freddie Cutting Commission

Posted by Drew Ludlow on June 11, 2012 at 9:25am in Short Sale Discussions

I know that Fannie allows a 6% commission, and I thought I read that Freddie does as well. Additionally, servicers are not allowed to negotiate those commissions.

I have a Freddie deal serviced by Wells Fargo.  Turns out that the Buyer's Agent is related to the seller and thus is not allowed a commission.  OK, I can see that.  But in the process, WF sent me a counter offer which cuts the 6% down to 3%, presumably because there is no longer a 'Buyer Agent' and becuase I am only representing the Seller.

I have seen that fannie will allow a max of 4% to one side, but am unaware of any Freddie guideline.

Any advice?  I'd like to counter their 3% with at least 4%, if not 6%.  What would you do?

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Replies

  • Jeff Payne June 11, 2012 at 9:34am

    Drew I would approach it this way, it does not matter if buyer agent is related to buyer because the commission gets paid to the broker and not the agent....  remind them that Freddie does not allow commission to be cut an see who blinks first

     

    • Drew Ludlow > Jeff Payne June 11, 2012 at 9:54am

      Exactly what I thought.  Thanks!

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