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I've not encountered this situation. Sounds similar to the arms length issue
Kathleen Daniels, Prob...
San Jose, CA
There is an agent in the office who lists a lot of foreclosures. She told me that anyone who works as an agent in our office cannot buy one of these listings nor could a family member.
Nina Hollander, Broker
I am not familiar with this either. Too bad you will not be able to pruchase it. They make the rules.
Ruth Primeau - no experience in this, though it may have something to do with 'Arms Length'!
Hadn'theard about that one before.
Sorry, I am not familiar with these rules. I've seen some banks have similar rules on short sales. Banks look at these differently because they lose money on them and want to make sure that no one makes a secret profit or plays any games.
My best suggestion would be to ask them if you wrote the offer with an agent from another company, would they accept it.
Not heard of that before
I tried to find a link but FNMA dot com is difficult to search.
That is excellent question to ask your broker.
Sounds like you should be able to argue the issue of "not the same broker".
This was implemented during the short sale heyday.
Banks still view this as an 'arms length' measure because there was SOOOOoooooooo many clever agents and investors, back in the day.
Fanny has a great many 'surprise' rules lurking to ambush the non-initiated.
Yes, I've run into this before.
Ruth Primeau It might be true. Good question!
I agree with Jeff Dowler here.
It appears that you received good advice.
Lots of good responses already.
We have not encountered this issue, and it looks like other have given you their input. A
This has ocurred to me as well - it is quite common so yes
To get around find another agent to represent you. Often they are glad to do the paperwork.
I have heard the same
Yes to what you were told. I came across it as well...
Interesting question. I have never encountered this situation.
Fannie and Freddy waste more money than anyone. From only listing with a few agents, some which you can never reach to fixing up homes and not get their money back. I list a lot of bank homes (i have not lited any fannie or freddy though) and with the big an small banks i list for, a licensed agent can purchase if from another office and disclosed, but they will not pay a buyer agent commission on the buyer side.
I think it's seen as a conflict of interest ?
Sounds a bit familiar, but that does not make it a good rule! Good luck!
Doesn't mean the rule isn't stupid. Possibly it is being done so that the foreclosures hit the 'open market' vs being sold in house or to relatives of those in house.
Sounds similar to Arms Length Agreements that were common with short sales.
Thanks for the question.
I am not able to provide any comments since I am not familiar with Fannie Mae rules.
'' HUD has a policy that the listing broker for HUD, any licensees under that broker and their close relatives cannot buy a HUD home, no matter who has it listed. Fannie Mae just announced a similar policy. This is the wording directly from Fannie Mae:
“Effective immediately, for any property assigned to a Broker, Fannie Mae will now prohibit the purchase by the listing Broker, Listing Agent, and any licensees affiliated with the Broker, even if located in a different office under the Broker’s control. Also prohibited is the sale to a close relative of the Listing Broker, Listing Agent, and any licensees affiliated with the Broker. A “close relative” is defined as a spouse, domestic parter, or child under the age of 18, or any relative who shares the same residence.
Should the Listing broker or any licensee of the Broker have an interest in purchasing a Fannie Mae REO listed with another company, the buyer/agent must indicate that relationship in Section 38 of the Real Estate Purchase Addendum. The agent receiving the offer must then communicate the agent’s status in the offer comments when submitting the offer into the system. The buyer type for this purchaser is Licensed Agent. A Listing Broker may be an investor or an owner occupant so the occupancy intent must be stated in the offer comments. “
Basically if you area a Realtor and your office lists Fannie Mae properties, no agent in your office or their immediate family can purchase a Fannie Mae home listed by anyone in your office. This rule is slightly different from HUD’s rule which states you cannot by any HUD home period if you are an agent, or immediate family of an agent in an office that lists HUD homes.'' ( read more here)
This is true... you can't be affiliated with the brokerage. A lot of these sales documents have a document you sign as an agent saying so.
Billions are lost due to government distrust of its citizens.
Wow, that is pretty strange...but I kind of get it. You can't enter a contest your company is hosting either.