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.
Replies to This Discussion
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Permalink Reply by Kristin Johnsen on
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My title company I work has E&O Insurance and we also have the bond and insurance with the state to cover any claims that arise due to the short sales I handle.
As for the lenders having the right to determine who negotiates their debt I think is completely wrong! The sellers are in need of help and if someone like myself is willing to help because a real estate can't, then I should be able to. These lenders are killing deals that could have been successful short sale and avoided the foreclosure completely and now the government that has backed those loan will now become owners of yet another REO property which is something this economy doesn't need. The US Treasury is bailing out GSE companies like Fannie Mae and Freddie Mac because of all the REO properties that have been unsuccessful at avoiding the foreclosure. We are in a bad cycle that we will never get out of if we cant work together to help homeowners get out from underneath this mess we have all created.
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Permalink Reply by Kathleen Couch on
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Kristin,
I am having the same issue. BOA is sending me emails. I wrote to the address they put at the bottom of the email, but no response. Then they put an email address to respond to, but it bounces back. I have been doing short sales almost 4 years now. I started before BOA was in Equator. I do not have to be licensed as a short sale facilitator in my state. Yes, it would not be hard to get a license, but the agents don't want to give business to another agent. They need help, but don't want to be threatened with losing their client.
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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Kristin,
While I appreciate your motivation to help people who are struggling, at the end of the day "they who have the gold, make the rules" (that would be the lenders).
When an agent takes a Short Sale Listing - they have assumed the responsibility to negotiate that short sale for their client. If, as you say, they are using your services "because a real estate can't" then that agent should not be taking Short Sale listings. One of the Codes / Standards of Practice Realtors live by is to "stay within our competency". If the Listing Agent is not competent to do it, they need to stay away. On the other hand, I am certainly not against 3rd party negotiators - heck, I am one - but I'm also a licensed Broker in CA. In our State of California, as 3rd Party Negotiators, there are a number of disclosures above an beyond the standard RE disclosures that are required to be made to all parties. An "unlicensed negotiator" is not able to make some of these required disclosures.
For example a couple of items we have to disclose when acting as a 3rd party negotiator in CA;
- We need to have an Agency Disclosure between all parties and the Negotiator - an unlicensed negotiator cannot execute this.
- We need to have all parties sign a Disclosure describing the amount of the negotiator fee along with how it is paid and by whom. Although an unlicensed person could sign this, they actually cannot perform Real Estate negotiation services for a fee in CA.
I don't intend to pick on you what so ever and I am sure you're terrific at what you do and are extremely helpful with the agents' clients. However, you really should get your license either as a Salesperson or a Broker and you'll get more business than you'll be able to handle - which is a good thing!
Best of luck,
Thom ColbyBroker & Negotiator
Newport Beach & Palm Desert CA
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Permalink Reply by Smitty on
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Thom, where in your listing contract does it state you are "assuming the responsibility to negotiate a short sale"? I've read many listing agreements I'm waiting for the listing agreement that has full and complete disclosures about the short sale negotiations. I know the state I work in has NOTHING in the listing agreement pertaining to short sales. A listing agreement talks about your brokers fee, listing period, listing price, communications, representations, duties, damages, lockbox, etc. NO WHERE in the listing agreement is there a paragraph on how short sale negotiations are handled...so you know what they say when you "assume".
Also, what makes you think unlicensed negotiators are not able to make certain disclosures? I've met and talked with unlicensed negotiators and they had 10X the disclosures I had. When I asked why they were all necessary, I got an earful. They had a entire legal team devoted to checking their paperwork every 3 months.
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Harry, this is in your listing agreement? My point is most listing agreements don't spell out anything regarding short sales. Now there could be additional forms that spell it out a lot more clearly, but that's because historically Realtors didn't negotiate with lenders. Our licenses allow us to negotiate real estate contracts, not short sales.
"generally required" - That's an interesting way to put it.
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Thom,
I appreciate your input and understand what you are saying, I will do what needs to be done to continue helping homeowners even if that means getting my license.. I am glad I received so much input from everyone. My frustration lies with Bank of America and thanks to short sale superstars I was able to reach out and speak to others to help relieve some of that.
Thank you all!
Kristin
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Kristin -
Because you have the best interest of the sellers in your heart, you will do fine. I also understand your frustration with BofA and any other lenders that are making the road a little more difficult, but I think they are all gun-shy after the debacle that have gotten the economy into.
I wish you the very best and if you need any help, feel free to call / e-mail.
Cheers,
Thom
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Permalink Reply by Richard on
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I was just thinking, (God help us all). Anyway, could this be the result of a lobbying effort by other professionals to thin the herd, so-to-speak , in the real estate industry since there are so many short sales out there? In other words, gain a bigger share of the market?
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LOL -
Or the lenders are slowing it down towards the end of 2011 so the write-offs won't be so horrific and they can spread more into 2012.... Got to keep that shareholder value up so they can get their year-end bonuses!
I used to work for a bank - Shareholder value at the end of the year is "all-important" for those big year-end bonuses......
Thom
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Permalink Reply by Paul Francis - Vegas Short Sales on
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Lol! It's funny when you can spot which ones are doing that...
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Permalink Reply by Bryant Tutas on
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xx
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