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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Similarly to a lot of other professions, for sure in civil engineering, consulting is not allowed unless you're licensed or supervised by a licensed professional.

That is an awesome analogy, Harry. I love analogies and I could not agree more.  I'm in Texas and it shouldn't fly here either but there are some out there who believe that a "workaround" is the solution.  Call me old-fashioned but that sounds dishonest to me, not to mention a recipe for disaster for the reasons you have mentioned.

 

Currently, I have a short sale listing where an attorney who owns a title company is soliciting Realtors to "handle" their short sales has taken my client away from me AFTER the property went under contract; of course my client just happened to decide that he needed legal representation AFTER the property went under contract after receiving 3 or 4 offers within one week of listing and placing a cash offer in escrow and the offer which is currently live, into escrow at title.  Again, call me crazy, and this is mere speculation on my part, but I am pretty darn sure that the buyer's agent has gone behind my back so his buyer (previously the back-up offer)  could make an agreement with the sellers to sell the property to him so Mr. Seller can remain on the property and lease it back from Mr. Buyer.  The attorney's office has represented to me that they are representing the sellers as their clients and negotiating the short sale but that they also own the title company where the contract is held in escrow and who will conduct the closing.  I have asked who is paying them for their services and how it will be characterized on the HUD-1 but, so far, I have not been given an answer.  I have also been told that I will not receive a copy of the approval letter because I am no longer an authorized 3rd party with the lender.  For now, there's no argument from me.  The attorney's "short sale negotiator" has informed me that the short sale has been approved and the contract from this buyer has been accepted and we are moving toward closing.  The Buyer's Agent openly and without apology communicates with my client directly.  The "short sale negotiator" prepares Amendments to the contract and sends them to the Sellers and Buyers for signature.  She is not, by the way, a licensed Realtor, but since she works for the attorney, who knows whether that is okay or not.  Did I mention that I am NOT going to argue with anyone about anything.  The back story about this situation is long and boring but suffice it to say that there was another offer on the table by a buyer who got there first which was substantially higher, after the bank countered their original offer, than the offer that's been approved and was a cash buyer instead of a buyer who is getting a loan.  I was not working with the lender because I had withdrawn my 3rd party authorization once I got wind of the possible plans made without my knowledge and not wanting to be involved in mortgage fraud, I happily reinquished my role as negotiator.  Now, this is, again, mere speculation on my part and I could be completely wrong on all counts; however, I will say that I have never seen a duck that walked  more like a duck, talked more like a duck or quacked more like a duck.  I am thinking of changing my name to Elmer Fudd.

Hi Brenda:

Kindly contact me as I can assist you with this issue.  [email protected]

Harry and Richard, I'm sorry but we work in an industry where someone can take an 4 week course (sometimes less) and get a license and that doesn't even remotely make them qualified to work a short sale.  Here is a woman who works in a title company who likely has intricate knowledge of closings, short sales, payoffs, escrow, blah blah, and may have 10X the experience that some agents do.  HAVING A LICENSE MEANS NOTHING. 

Having EXPERIENCE with short sales means everything!!!  I speak with agents who have years of experience listing property, but NO experience with short sales, so you think they would do a better job than Kristin who has been working directly in short sales ??? 

I don't consider myself a newbie by any means and *I* STILL learn something new every day in this business and the one thing I know for sure is just because you are licensed to drive, doesn't mean your a good driver.

Very true Smitty.  It is FAR to easy to get a license and FAR too easy to keep it.  I wish the cost to be a Realtor would go up to about $10,000 per year to thin the herd :)

I agree, I could very easily go get my real estate license but the fact of the matter is, I'm not handling the real estate transaction, the agent still lists and sells the home like they would any normal transaction. I am not in the business of selling homes(or building them for that matter) I just deal with the bank so that the agents that are not capable or do not have time to put the proper time and dedication into getting them approve don't have to.  I am considered through my state of Indiana as a Foreclosure Consultant/Credit Organization and that is what I do. As for California law, I no longer reside in California nor do I have any desire to negotiate short sales there so I will stick to the laws that govern the state I reside in and it should not be left to a bank to decide who helps homeowner in their time of need, it should be up to the homeowner requesting the help!

While I don't agree with Bank of America's policy, I can understand why they would try to put a policy like this in place.  When short sales really got ramped up here in my area of Florida, there were every type of "negotiator" that you could think of, everyone was a "short sale negotiator" with years of experience.  Most of them turned out to be fly by night scammers that didn't stick around long.  (Ask me how I know)  Since then, the process was streamlined and short sales became much more normal for agents to do in my area.  Bank of America, by their own admittance in a meeting I was in, was trying to cut out what they thought were scammers and I think 3rd party negotiators got caught up in the mess.  I believe we have ourselves to blame for silly rules like this being implemented.  Agents, title companies, mortgage brokers, attorneys, short sale companies,  were taking on short sales without any experience and not really working to see them to the end and making those of us that work them hard look really bad.  I guess the lenders feel that there needs to be a line in the sand as to who they will allow to work a short sale.  My personal belief is that an agent can and should handle a short sale or not take the listing, but that is a just my belief because I personally have never seen the need for a third party to handle it for me.  I know there are agents who need a third party to handle it for them and I understand their needs, I just don't agree with them.  Sorry for the long post :)

The bottom line is, BOA wants you to be licensed.
Of course they hire people to negotiate millions in assets straight out of McDonalds, but this not the issue. You have to get your license or they will not play ball with you. It is CYA for them most likely.
In CA, where I work, if you negotiate a short sale, do all the work for an agent, who does not have the either the patience, knowledge, disire, aptitude, or all, to get the file approved, and you don't have a license, the broker on the list side, where $ comes in, will not (or should not have to) pay you.
So if you want to play this game, you need to get licensed.
I agree with Jeff that only agents should be doing them themselves, but I have now made a supplemental income by helping other agents out who can't or won't do them. For ME, in the end it is about helping people move on, and I still achieve this!
I also have to agree with BOA that ther are a lot of scammers and requiring a license will weed out a lot of those types. Look at it from their point of view, as you have to.
Solve the problem and go get your license or else work the sale under the list agents equator login as suggested by Steve.
Get on with helping people move forward in life.
Sorry for the long post as well....
:)

 

Interesting comment / statement.....

"work the sale under the list agents equator login as suggested by ______"

How is that ethical or honest?

Kristin,

 

Will the licensing board consider giving you a grandfather license due to your long term experience?  Some professions will do this.  It works the same as if you had taken the test.

You wish it would go UP to $10,000?  How about down to $10,000?

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