Bank of America's policy on allowing third-party negotiators to work short sales

I am a third party negotiator that the agents and homeowners select to assist with the short sale process. For a year I have been negotiating with lenders through the Equator system, this past week I was told that I was not an agent or attorney and that I was not allowed to be working on the short sales. Has anyone else encountered this? Also how is Bank of America able to tell the homeowner whom they can have negotiate the short sale for them as long as I abide my our state laws (which I am). Most agents don't want to spend the extra time it takes to get a short sale approved and closed and that is why they come to me. I had 4 BofA short sales that have been being worked on for 3 months get denied and closed due to me not being an agent. I think that if the government investors were aware of this issue they would not be ok with it.

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I think there was some issue that arose from Equator and not Bank of America.  I think equator was kicking them out because it was originally an agent platform.  have you tried contacting anyone at Bank of America?

Yes, I have had a chance to speak with both of them and Equator blamed it on Bank of America and Bank of America stood firm on their policy of only agents and attorneys can work the short sale. So from what I can gather, it is a Bank of America issue. None of the other banks that work through Equator have had a problem with it.  Please let me know if anyone else is experiencing this.

Thanks 

We are a 3rd party but licensed to practice real estate.  Even though we are not the listing broker, EQ always thinks we are - the HUD-1 say differently.  I would recommend getting licensed - it is not too hard......

I'm a 3rd party negotiator, but we are licensed as well.  I do feel this is discrimination in some way, especially where you can show you've got a good track record, because I've seen licensed agents not know how to muster through a short sale.  It comes down to experience. 

Can you push back?  Maybe write a letter to the Edward O'Keef, BOA General Counsel

4136 Cornwallis Camp Drive
Charlotte, NC
(704) 541-8405

 

I think it's completely ridiculous.  Under that premise, a homeowner couldn't negotiate their own sale and I'm sure there are PLENTY of  homeowners that are also agents, underwater who know how to work a short sale. 

Actually homeowners can NOT in fact negotiate their own SS in Equator. It's not allowed. It's a good ole' boy party going on in the back seats of DC's limo's and we're not invited. Many states, including mine in Florida, you must either be an attorney, licensed agent or licensed mortgage broker to negotiate a SS. Since I'm not a lic. Mtg Bk I can't charge additional for negotiating those transactions, which is another separate job from what I do as a licensee. The problem as I see it is that so many lap dog REO agents were so busy kissn bank hiney that the banks now run the entire show, including our MLS's. They are getting payoffs behind closed doors NOT to accept deals, evidenced by the demo of houses we are seeing more and more of around the country. We have homeless VETERANS and those idiots are tearing down houses that our vets could call home for a buck. It sickens me, especially as a veteran. They closed down the Orlando Naval training Center years back, Feds sold it to the city of Orlando for $1 - this was to be the largest inner city renewal program in the country at that time, and the cit handed it off to developers at NO charge - AND they weren't even a Florida based development company. Greasy fingers leave dirty fingerprints.

FYI Smitty - Licensed agents are not allowed to negotiate there own short sales and must use another agent here in CA. Also, since it is a short sale, the agent as seller can receive no financial benefit, either real or perceived.

In CA the reason you need a license is because you are negotiating a real estate contract i.e. practicing law. Although a very narrow scope, real estate, it is still is a legal process. I can understand why B of A requires a license.

 

Smitty,

You are a licensed RE agent in NC and negotiating short sales...I thought only attorneys could negotiate short sales for homeowners in NC...we are in the process of getting licensed there and were told that agents cannot negotiate short sales in NC. Your feedback is greatly appreciated.

Paula

Hi Paula,

I work in New England as a 3rd party negotiator.  I've also negotiated in New York.  I don't know the laws in NC, but if attorneys can negotiate and you want to be a 3rd party negotiator, partner up with an attorney there.  We have 5 firms we work with that we trade business with.  They represent our clients and we do all the negotiations.

 

Good luck.

Thank you to everyone that has given me advise on how to deal with Bank of America's policies. However, most of you  are familiar with Equator and it puts you in the "agent" position even though the HUD and listing contract states different and I believe this will become a problem too.

It's a pain, but have the agents you work with sign up for Equator and work there files under their login.

This likely the best was to get around this issue. I am closing them both ways (& I am licensed). I have have been told by some at BOA that they can no longer allow 3rd party negotiators, and still gotten the file closed.
working them under the other agents login creates the least issues with BOA.
On the other hand, if you are closing a lot of these and saving BOA in losses, you need to reach out senior levels and let them know that you are helping them lose less $!

As a third party negotiator that is not a licensed realtor, I have the listing agent sign up in Equator. 

Then they have full access to everything that is happening on the short sale anytime they want.

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