TO:
State and Local Association Executives
FROM: NAR
Government Affairs
RE:
HUD’s New Policy on Dual Agency Agreements in Short Sale
Transactions
DATE: 23
September 2013
On October
1st HUD will implement a new policy which prevents dual agency
agreements in FHA pre-foreclosure transactions. HUD announced this policy was
implemented because the HUD Inspector General detected fraud and abuse in the
pre-foreclosure sales process.
NAR is working closely
with HUD on this policy and is in discussions with agency officials seeking
clarification of the rule. NAR submitted a letter
to FHA Commissioner Galante expressing our concerns with this new policy and how
it will directly impact homeowners. Particularly, we noted that this new policy
will put homeowners at greater risk of falling into foreclosure if they cannot
find a real estate agent, especially one who is knowledgeable about the short
sale process, to list their homes.
To assist in NAR’s
ongoing discussions, we are asking that each President send comments to HUD on
this new policy and the disruptive effect its implementation would have on
communities across the nation.
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