529 Olivia Street with Transient License - Key West

Once there were two. Now there is just one. Yesterday the single family home at 531 Olivia Street in Old Town Key West was sold for $525,000. It had been offered as high as $999,500 in 2006. CLICK HERE to see what you missed.

But 529 Olivia Street is still available. At least it is as of this writing. The listing Realtor describes this property this way:

"'OLD KEY WEST' TRANSIENT LICENSED CONCH HOUSE. GREAT INTERIOR IS UPDATED & STYLISH, DECORATED & FURNISHED TURN-KEY FOR IMMEDIATE CONTINUED RENTAL OR AS A GREAT VACATION HOME. GREAT CENTRAL LOCATION NEAR BOTH DUVAL, TRUMAN & SIMONTON STREETS! FRONT PORCH AND REAR YARD W/HOT TUB, OFF STREET PARKING. SHARES A DRIVEWAY WITH THE IDENTICAL HOME NEXT DOOR."

CLICK HERE for more info on this house and to see photos of the inside. The property is managed by a local property manager and the place stays rented. It has its own parking. And it has just about everything a vacationer wants - except a pool. And I think there may be room for a pool. This property has a transient license which means you can rent it daily, just like a hotel room and get all of that income to help defray some of the cost of ownership. 529 Olivia Street is offered at $550,000 furnished and with the valuable Transient Rental License.

If you are one of the many potential buyers that want to buy a place in Key West and have your place in Paradise help pay for itself, 529 Olivia Street may be what you are looking for. Please considering calling me, Gary Thomas, 305-766-2642 or contact me by e-mail at kw1101v@aol.com to discuss purchasing this property.

1020 Von Phister Street - Casa Marina Area - Key West

Want to live far from the Madding Crowd? Want to have a place where you will feel confident nobody, but nobody will ever build a place that can look down onto your pool or make noise that will wake you up at the crack of 3:00 AM? Consider becoming my neighbor by buying the really sweet home at 1020 Von Phister Street in the Casa Marina Area of Key West.

1020 Von Phister Street is described this way by the listing Realtor:
"This extraordinary home was custom designed and built with master craftsmanship in 2002 by an award-winning architect. Situated on a beautiful block of the Casa Marina area, the property has 3 bedrooms plus an office, 4 bathrooms, a gourmet kitchen, large windows for light and off street parking for 2 cars. An outdoor shower on the second floor master bedroom porch has wonderful privacy and serene views of the gardens and pool."

This is not an ordinary "house". The architecture and design lets you know upon entry that you are someplace "special". The formal entry entices you to walk through to the living room with its two story view of the pool and garden. Each of the two bedrooms on the main level have a private bath and private veranda. The stairway to the second floor has windows with muted views of the garden to the east. Then you enter the large master suite with his and hers (or in Key West his and his, or hers and hers) bathrooms. The master suite has a built in book ledge that overlooks the living room below and the pool and gardens. If that isn't enough, the master suite has its private second floor veranda which would be great for some stunning sunning. And there is a even a private outdoor shower CLICK HERE with obscured views of the forest primeval next door. (That property runs from Flagler to Von Phister with a depth of 199 feet and a width of 52.75 feet. CLICK HERE to see the stand of huge trees that will not be taken down during the lifetime of anyone reading this blog.) Those trees provide so much privacy that I want to buy this house.

The house next door to the east is a second home for somebody else. The other properties in the neighborhood are mostly single family homes on large lots.

This particular area has a lot of mahogany and other tall trees that make the streets particularly beautiful. Von Phister Street runs parallel to Flagler Avenue which leads to the Casa Marina Hotel two blocks west. Von Phister is very quiet street close to everything, yet far enough away not to be in the middle of anything. You can walk to the beaches in five minutes or less. You can ride your bike to one of about seven gyms or yoga places within 5 blocks. There's a nearby grocery store, a Dairy Queen, some art galleries, a paint store, some churches, etc. But none are that close. You have to go leave the sanctity of Von Phister to go back to the real world. It's not that far. But it is far enough.

This is the deal. 1020 Von Phister Street was under contract until last week. Something happened and the property is now back on the market and it is now priced at $1,299,000 or $657 per sq ft. The house is 1977 sq ft and sits on a large 4558 sq ft lot (46.75 x 97.25) lot. The house is only seven years old, and it is really a beauty. The owner of this house has already purchased another house a block or so away. This is not a distress sale!

CLICK HERE for more detailed information and photos of this sweet home. I live across the street and to the east just a tad bit. I love living in this area. And I am really serious about the beauty of this very special home. Please call me, Gary Thomas, 305.766.2642 to schedule a showing of this property. You will be very pleasantly surprised.

New Bank Owned Houses - Key West

For those who think they can get a good deal by buying a Bank Foreclosure, may I present two new offerings for your consideration.

607 Margaret Street is located in the Old Town area of Key West. It is two doors to the south of Mangia Mangia for locational reference and across the street from the old Harris School. There is a big tree in front to provide shade from the sun. The interior has Dade County Pine walls. And it is a fixer for sure. The listing Realtor describes this house thus:

"Bank Owned. Fantastic location in Old Town Key West. This home has charm and needs your personal touches. Make this your oasis. Backyard has patio. Bedroom on first floor and second bedroom is on the second floor plus additional storage in the attic."

CLICK HERE for more info supplied by the listing Realtor and to see 4 photos of the property. This house is offered at $349,900 or $360 per sq ft.

3725 Eagle Avenue is located one block west of A1A or near the intersection of Flagler and South Roosevelt Blvds. The two blocks just prior to A1A have some of the nicest homes in Key West. This is not one of them right now. It needs a lot of work in my opinion. But the house is very large (2900 sq ft) and it sits on a huge lot of 12,000 sq ft. That is not a typo. The lot is gigantic. The asking price is $355,000 or only $122 per sq ft. The listing Realtor describes this house this way:

"Mediterranean Style Home. This 3 Bedroom/2.5 Bath residence has authentic textured walls, beamed wood ceilings, beautiful redwood staircase, soaring ceilings, arched french doors and windows, fireplace, private dining area, window-wrapped family room and pinewood floors. Bank Owned Property. Priced to Sell."

CLICK HERE to view listing information and more photos.

The house directly next door to the east CLICK HERE was renovated in 2003-2004 and it is beautiful. I even took a pretty picture of it this morning so you get an idea of what 3725 Eagle might look like after a few hundred thousand dollars and a lot of work.

Both properties are bank owned. I suspect 3725 Eagle will be under contract by Monday. So if you want to buy it, contact me right away. This house will be an an undertaking and it is going to take money and vision to transform this property into a showplace.

607 Margaret Street has a tiny deck and the smells. There is an open toilet right off the living room--no door. The exterior was butchered with an aluminum awning and most of the windows need replaced. The interior stairway does not meet city building code requirements. And you will be throwing a lot of money into any fix-up of this place.

If you think you want to buy a bank owned property, this is your chance. Two new listings in two different areas of town. Both are "affordably" priced. Both need vision, work, and money. Please call me, Gary Thomas, 305.766.2642, if you would like to make an offer to purchase either property. Don't wait.

Good Deals - Recent Key West Sales

No Good Deed should go unnoticed. There were three sales that hit the mls since June first that I believe are worth noting.

I wrote about 811 Southard Street on December 21st. It was a short sale. It originally listed for $5,300,000 and sold for $2,500,000 or $656 per sq ft CLICK HERE. That is a great price for a great property in a very good Old Town location. Congratulations to Rudy and Roger.

I never got the chance to write about 1020 Southard Street CLICK HERE (the Gingerbread Man House) because it went under contract within a day or so of being listed. It sold at the list price of $1,975,000 or $760 per sq ft. The Gingerbread Man House was renovated a few years ago by the same duo that recently renovated 728 Love Lane. The pretty as a picture house at 728 Love Lane house is on the market now and is priced at $1,795,000. CLICK HERE.

The Buyer of 1020 Southard Street has their "old house" at 1108 Fleming Street on the market. CLICK HERE for more info on this house priced at $1,295,000. I wrote about it CLICK HERE. If you are a serious buyer for a great house in Old Town, consider this property. Remember, the current owner just purchased a very expensive house a block away. Hint! Hint!

Another house I wrote about also closed this week. CLICK HERE to read what I wrote about 924 Flagler Avenue in the Casa Marina area. It was listed for $1,500,000 and sold for $1,250,000 or $606 per sq ft. The house is as original as any I have seen in Key West, and it has been lovingly maintained by the same family since it was built in 1935. The new owner bought a Key West treasurer. Mitzi Krabill represented the seller and I represented the buyer. Congratulations Tim. And Merry Christmas.

Good Deeds, indeed! Each of the three houses I mentioned are important houses in Key West. I'm sure there will be a few readers that think the buyers paid a lot. Wait a couple of years. These buyers will be remembered for the great deals they got.

If you are thinking of buying a place in Key West, you might want to put your property search in full gear. The market of available good houses in good locations is shrinking. CLICK HERE to search the official Key West Association of Realtors mls website. If you see a property that interests you, please contact me, Gary Thomas, 305.766.2642 or e-mail me at kw1101v@aol.com. You don't have to pay a million bucks to get a good deal. But you will never get a good deal if you don't make an effort.

"My seller does not want to lose any money."

I wrote an offer over the weekend on a nice house on the edge of Bahama Village. I point out the location because the location is part of the reason the house has not sold. The house itself is very nice. It has the features many potential second home buyers want: enough bedrooms and baths, new kitchen, off street parking, and charm for days. But the location causes most buyers to not even look or if they do look, to choose another location.

I wrote in my blog about a similar property a few months back. I hosted many "Open Houses" at the height of the buying frenzy at a house on Whitehead Street just off Truman Avenue. It was newly redone by a real craftsman. Everything was great. It had 3 bedrooms, 3 1/2 baths, granite countertops, 3/4" solid maple floors, a new pool, new windows and doors, off street parking, and it was charming. It was priced at $595,000 for an all new custom redo. Literally hundreds of people walked through the house during the months I hosted Open Houses. Most of the lookers were on their way to see the Hemingway House or the Southernmost Point. But some were serious lookers that I turned into clients. But nobody ever considered buying that house because of its location. They said if it were on the "other side of Duval" it would have been a different matter. And that is the same problem with the house mentioned above. It is a great house in what most buyers consider to be the wrong location.

Instead, I want to discuss the seller's potential predicament. The seller's agent told me "My seller does not want to lose any money." I can appreciate that. The seller paid "X" for the house and added improvements that cost real dollars. Now, for whatever reason, the seller wants to sell.

The real estate market is different now than it was a few years ago when the seller was the buyer and buyers were buying almost anything. Even back then buyers were resisting "that" location. I'm referring to the similar house I mentioned above. It is located a block or so from the house owned by this potential seller. Instead of being part of a buying frenzy, today's buyers are part of a bottom feeders frenzy. Buyers are looking for deals. But they want they still want location, value, and charm.

A buyer can sometimes create charm by building new or redoing a place. Sometimes. I've seen too many places with botched redos. Charm does not come cheaply or easily. Many properties are certainly better values today. There have been several short sale and bank foreclosure properties that have sold in Old Town, Casa Marina, and The Meadows areas that were real deals. (I wrote about many of them in my blog.)

We are in uncharted territory right now with all of the short sales and bank foreclosures. Many sellers will sign almost any contract as long as they think they will get off the hook and not be held financially responsible for any of the shortfall on the loan. A lot of the properties that have sold were bank owned and sold at a discount. But the discounted prices have pretty much become the "market".

However, there are still some real world/real market properties offered for sale. If a seller really wants or needs to sell in this market, he or she is going to have to meet the market to sell. Crossing of one's arms and defiantly stating "I don't want to sell at a loss!" won't work. Having one's Realtor make the statement won't change anything.

If a seller who owns one thousand shares of GE stock that he bought in 2007 for $35 per share wanted to sell that same stock today he would sell it for around $13.50 per share. Next week it might be worth more. Maybe less. He could refuse to sell it and hope the price recovers. But if he needed to sell, he would have to accept the loss.

Yet many real world "sellers" refuse to accept the fact that they may have to sell real estate at a loss. Unless a property sells for all cash, it is pretty safe to assume that a buyer would need to finance the purchase. Lenders will not lend if a property will not appraise. It is that simple.

I know my buyer won't be getting the house I mentioned above. Maybe the seller really does not need to sell. But my suggestion to the seller's agent was to get an independent appraisal of the current market value. No rational seller wants to sell at a loss. But every seller ought to know what his or her property is really worth in this current market downturn.

CLICK HERE to search the Key West Association of Realtors mls database. When your search is complete you will be able to see how long each listing has been on the market. If a property has been listed for a really long time, ask yourself "Why?". If you see a property that you like and would like more information or would like to schedule a showing, please call me, Gary Thomas, 305.766.2642. I am a full time Realtor at Preferred Properties Coastal Realty Inc in Key West. Our office is an affiliate of Christie's Great Estates.

Key West Bottom Feeders - Part Two

A year ago today I wrote about the month ending May 31, 2008. CLICK HERE to see what I wrote then in full. Everybody in town continues to be an expert on the state of Key West real estate sales and our local economy. I still use this blog to lure new buyers. And I still don't associate with Realtors during my time away from work.

There were 7 single family homes sales in all of Key West during the month of May 2009. Two were short sales and one was a bank owned property at 910 United Street. I showed that house at least a dozen times. That place had huge locational and structural issues in my opinion. The house was sagging terribly on one side and had the misfortune of having one hell of a tree in the yard which may prevent any owner from ever putting in a pool to take advantage of the otherwise enormous lot. Oh, it's on a busy street to boot. It sold for $488,000 or $221 per sq ft. Another house located at 1300 Seminary Street (originally priced $1,869,000 in 2005 and sporadically reduced) sold for $1,035,000 (or $524 per sq ft)after just 27 days on the market when it was offered at $1,188,000.

The least expensive house to sell went for $270,000. The most expensive maxed out at only $1,100,000. (I had a buyer that submitted a higher all cash offer on that place last fall. The Seller should have taken the bird in the hand offer rather than wait for more money. I remember an email I sent to the listing Realtor warning about the cost of holding that property [monthly mortgage payments, utilities, pool maintenance, etc. which I estimated to be around $7000 per month]. My buyer bought something else in a better location at a better price.) The average price per sq ft on single family homes in all of Key West in May was $370. But readers need to be aware of the marked disparity of properties and locations. That price per sq ft is not proof of anything.

There were 14 condo and townhome sales during May. Two of those were shown as short sales. But 7 were bank owned properties. None of the remaining 5 sales was anything to write home about. So at least 64% of the sales that closed were problem properties. The least expensive unit sold for $110,250 and the most expensive only sold for $405,000. The average price per sq ft for units sold was a mere $261.

Here is some food for thoughtfor you bottom feeders: there are 110 properties single family properties shown as contingent or contract pending. Ten of the properties are already bank owned. Sixty-five of the houses are officially designated as short sales. Ten that I counted are bank owned. That means at least 68% of the single family homes in Key West currently under contact are distress sales. The positive spin on that number is that 110 properties are under contract. Not all will close. But I have to think a great number will. Consider the alternative. Is Countrywide or any other big lender prepared to own that many houses in Key West to get a better deal? The short sale contract between the short sale owner and the short sale buyer may not get accepted by the short sale lender, but I cannot accept the big national lenders wanting to absorb more bank owned properties.

There are 104 condos and townhomes shown as contingent or contract pending. Fifteen of those are already bank owned and 70 are designated as short sales. That means 82% of the condos and townhomes are officially distress properties. But there is some good news about a couple of the contingent properties. Two luxury units at Harbour Place went under contract in May, and neither is a distress sale. There is also a unit with a full transient rental license at Beach Club under contract, and it is not a distress sale either.

We are working our way through the inventory of available homes, condos and townhomes. The inventory is shrinking. I can't definitively state we are at the bottom of the downturn, but we must be pretty close.

If you want to buy your place in Paradise before the big one eludes you forever, CLICK HERE to search the Key West Association of Realtors mls database. Nobody will track your movement on the Internet and your personal information will not be collected by me. If you see a property that interests you, please call me, Gary Thomas, 305.766.2642 or e-mail me at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty Inc. Our office is an affiliate of Christies Great Estates.

Two-Fers on Peacon Lane - Old Town - Key West

There are two great houses on one of the best little lanes in Old Town Key West, Peacon Lane. Peacon Lane is only one block long and is situated between Elizabeth Street to the west and William to the east. It is a one way lane entered from Eaton Street and exits onto Caroline Street. The exit point delivers you right at the doorstep of the Historic Key West Seaport. Peacon Lane is a mix of a few large houses like the ones mentioned here today and several smaller cottages. Most of the houses have been gentrified but there are a couple of Conch and left-over hippie places as well. CLICK HERE to see one of my favorite Old Town houses that is located next to 315 Peacon Lane. And CLICK HERE to see the cottage on the otherside of 315 Peacon Lane. That's what makes lanes like this one so appealing. Diversity.

315 Peacon Lane is described by the listing Realtor this way:

"This Is A Must See To Believe! Beautifully Renovated Conch Home On Prestigious Peacon Lane. Open Floor Plan With Dade County Pine Walls And Floors Make Entertaining A Breeze. Large Designer Kitchen Featuring Granite Countertops, Stainless Sub-Zero Appliances, Wet Bar And Doors That Open To a Tropically Enclosed Garden Is To Die For! Three Bedrooms And Three Baths Including Master Suite With Large Walk-Out Balcony. Located On A Quiet, Quaint, One-Way Lane Yet Steps Away For The Waterfront, Shops, Restaurants, Duval Street. This is a potential short sale situation."

CLICK HERE to see some great photos of the house and more detailed information. This property is offered at the current asking price of $2,150,000 or $792 per sq ft. This property has been on the market for 579 days (366 plus 213).

Right across the street you will find 316 Peacon Lane that was listed just last week. It is offered at $1,600,000 or $789 per sq ft. The listing Realtor describes 316 Peacone Lane thus:

"Beautiful historic 2 story home completely renovated including a new 2 story addition. Detailed craftsmanship is evident throughout this home with hand sanded Dade Co. pine walls, pine floors, crown molding and intricate tile work. The entrance foyer leads to a showplace kitchen and great room with two sets of French doors to the backyard with pool. Also on the first floor is a large guest bedroom with ensuite bath and a powder room. The second floor has a generous sized guest bedroom with ensuite bath and a large master suite with beamed cathedral ceiling, French doors to a small balcony, and master bath with double sinks, tub and separate shower. Best location - walk to the historic seaport, Duval St, restaurants and shops."

CLICK HERE for more detailed information and photos of this great property. 316 Peacon Lane is not a short sale!

One of the things I really like about Old Town lanes is that most require that a person actually intends to go there. If you are zipping down Eaton Street in your car or scooter you will surely miss the only entrance unless you are looking for it. It comes and goes that quickly. The entrance is opposite the former Calvin Klein House on Eaton Street. Most people are so busy looking at that place that they miss Peacon Lane. I found THIS PHOTO of a friend, David Kaufelt, leading an expedition participants during the Key West Literary Seminar to explore Key West landmarks like the Calvin Klein House.

If you are looking for a large home in the Old Town area with character and location, please call me, Gary Thomas, at 305-766-2642 or e-mail me at kw1101v@aol.com to schedule a showing.

708 Passover Lane - Old Town Key West - Short Sale

The neighbors across the street are very quiet. And you can rest assured the view from the front door of 708 Passover Lane will never change. Never Ever!

708 Passover Lane is located just across from the Key West Cemetery at one of the highest points in Old Town Key West. The house sits to the rear of an odd shaped lot of 3364 sq ft. There is off street parking and a landscaped front yard with obscured views of the cemetery. The house itself is an arts and crafts style structure that was built (county records) in 1938. It had a new roof in 2000. County building permits suggest most of the interior renovations and the pool and rear deck were done in 1992.

If you are one of those buyers who feels compelled to have a designer kitchen complete with granite, marble and stainless steel, this old house could be a candidate for a new re-do that will not break the bank. It simply isn't all that big a place. And it is perfectly livable as is. The present owner paid $840,000 for this house in 2005. But now the property is a short sale and is offered at the asking price of $525,000 or $746 per sq ft.

On the other hand, some strategic fairy dust and paint could go a long way to make this charmer "pop". CLICK HERE and look at the photo of the off street parking. Imagine how cute the same space could be if the fence surrounded the area and was painted bright white. Get rid of the pea rock and brick the driveway.Ditch the trash cans while you are at it. Yuck! Imagine your little Key West car sitting in the driveway. There is a nasty old stub of a long gone tree that needs to be removed. Reinstall the picket fence around the permiter of the entire property and paint it white. Voila. You also may want to remove the screen that encases the front porch. It is not necessary and hides the beauty of this charming cottage. A house a couple doors to the north (CLICK HERE)looks somewhat similar. So it may give you an idea of what I think 708 Passover might look like sans screened porch.

There are only eight houses on the block. CLICK HERE, and CLICK HERE. CLICK HERE to see the scary cemetery. You don't need to worry about the neighbors across the street making a ruckus and keeping you awake all night. You don't need to worry about their friends taking up all the parking spots on the street. Same for the other houses on Passover Lane. The properties are single family and there isn't a guesthouse, bar, restaurant or gallery within a couple of blocks.

This is how the listing realtor describes 708 Passover Lane: "Sequestered cottage in the heart of Old Town with brick patio, fencing, offstreet parking, high ceilings, wood floors and walls. Tented by Hammerhead 2/11/09." CLICK HERE to read more info from the listing Realtor and to see more photos.

Everything in Key West seems to be negotiable these days. Half of my readers won't consider this house because of the location. So that means less competition from potential buyers that do not mind tombs with a view as neighbors. I think a smart buyer will act on this.

Please contact me, Gary Thomas, 305.766.2642 or e-mail me at kw1101v@aol.com to arrange to see 708 Passover Lane. By the way, I recently sold the house next door at 8 Passover Lane. My buyers absolutely love it and the neighborhood.

Fore! - Thought - Key West Golf Club

Forethought: "n. A thinking or planning beforehand; prescience; premeditation; forecast; provident care."

If you keep track of sales activity in Key West you may have noticed a flurry of activity in the past few weeks at the Key West Golf Club community. During the past couple of years there have been numerous foreclosures and related short sales that have driven down the asking and selling prices at the Key West Golf Club. I'm not reporting anything new. But the flurry of recent buying may be a signal we are at or near the bottom of the market, at least at the Golf Course.

CLICK HERE to view townhome sales at the Key West Golf Course over the past year. There was only one single family home sale (CLICK HERE) during the same time period. It sold for $735,500 in June 2008.

I also generated a report CLICK HERE of active listings for townhomes at the Golf Course. CLICK HERE to see a separate list for single family homes at the Golf Course. Try a Google Map search of the street address to get a better feel what the surrounding area looks like. Just like everywhere else on this planet, location means a lot. And in this instance, some "lots" are more valuable because of their location than others. Also, checkout the individual listings for photos of the interior and exterior. Asking price is not always a predictor of a good location or quality finishes of a townhome or single family home. Some townhomes and some single family homes have private pools. So you really need to view each listing separately.

My suggestion: use some forethought and consider buying a townhome or single family home at the Key West Golf Course community. Prices are low but demand may be rising. Get a good deal before the good deals are all gone.

If you see a property you like, please contact me, Gary Thomas, 305.766.2642 or e-mail me at kw1101v@aol.com. Let me help you find your place in Paradise. If you haven't been to the Golf Course in awhile, the view at the end of Golf Club Drive just as you enter The Sanctuary is absolutely beautiful. (I took the above photo last Friday.)

Her Dog Ate Her Homework & She Didn't Get the Memo!

One of the agents in my office has been working like a dog to sell a so-so property in a so-so location in Key West. The property is a short sale. The buyer and seller agreed to the price and my fellow agent has been shepherding the short sale through the Bank of America short sale service center.

A couple of days ago he received this e-missile from BofA:

"Hello,
I got the notes from customer service that you will not reduce the commission to 4%. I'm sorry but per our revised matrix this loan falls under the 4% commission. I am unable to give you anything more then that. We do not offer 6% commissions, the most we give out is 5% but this loan does not fall into that category. I'm very sorry, but please revise the HUD and send it in. If I don't receive it within 72 hours the correct way the file will be closed out for non compliance."

The average mls offer of compensation is 3% of the sales price to a buyer's agent. Sometimes the split is higher and sometimes it is lower. For the past few years many lenders have refused to pay the real estate commission offered in the mls offer of compensation and instead refused to approve short sales unless the commission was reduced to an amount lender was willing to pay.

The National Association of Realtors complained and in March 2009 Fannie Mae issued this directive to loan servicers (the companies that process loan payments and make decisions on the approval or disapproval of short sales):

Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers
Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.

Maybe the lady at BofA didn't get the memo that it is not okay to screw Realtors and threaten not to approve a short sale unless the Realtor take a cut of his commission so that BofA can repay the bank bailout money (and pay bonuses and retention payments to worthy employees). Or maybe BofA is so big that it doesn't have to obey any little policy.

I worked my rear end off last summer on a very difficult deal. Countrywide (now part of BofA) was the lender and it approved the short sale but only permitted a commission of $50,000 even though the earned commission was much higher. I've had similar situations with other lenders that demand Realtors share in the misery of a short sale by reducing their commission. The Fannie policy was supposed to address those wrongful practices and stop them.

I don't have a dog in the fight over my fellow agent's battle with BofA over the commission he earned but will not receive. But I know there are plenty of other agents that are experiencing the same treatment from BofA and other lenders every day. Some real smart trial lawyer is going to come along and create a class action lawsuit against the lenders and servicers that are violating the rules. I welcome that. In fact I have a lawyer I showed property to a few weeks ago that filed a very famous class action lawsuit. Are you reading this, Tom?