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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As a third party negotiator, I have been saying this for awhile.  From what I have heard from several industry sources, BOA wants only licensed agents doing short sales because they are most easily controlled and manipulated...

Bank of America is now allowing non-licensed support staff of the licensed designee.  Here's the newly updated B of A 3rd party Authorization Form.

Thanks Smitty, I agree completely. :)

Can I vent? It has always been an issue on my mind.  We (Realtors) work three to twenty times harder on a short sale than equity sale.  Instead of our files being a few pages thick some short sales I've worked are an inch thick and there are three files for the same home.  Our email boxes are full to overflowing, our stress level through the roof, instead of deals closing in 30-45 days from contract it's an average of 4 -5 months. We are compelled to hire extra help to keep up with the voluminous workload.  Whether the assistant works for the Realtor, lawyer or title company many extra man-hours are dedicated the arduous task we didn't ask for, but inherited due to the Graham, Leach, Bliley Act signed by Bill Clinton in 1999.  And, what really kills me is after months of work we finally get the long awaited approval letter (if the buyer is still around or their lender does not deny the buyer's loan) and instead of getting a half point or two more our super hard earned commission is cut.  Nevertheless, we move on to the next deal and, at least, some of your clients appreciate what we do...Learn more about why we are in this mess at my blog:  www.PoliticallyScrewedUp.com

I would do a Co-Listing Agreement with the homeowner and the Listing Agency.

I actually find your post ironic because last time I checked, Titanium Solutions was contracted by Bank of America to contact home owners for Short Sale Initiation / Loan Modification and they were to be the 3rd Party Negotiator on behalf of the Borrower.

Just curious...WHO pays your fee?

At a meeting here in Las Vegas, B of A was asked about 3rd Partycompanies. The rep said they at B of A had no problem with it...but they wouldn't pay for the 3rd party. I'm curious...can you not work as a NON-LICENSCED assistant to the RE agent? (I'm sure this would vary from state to state and could potential be a Broker's nightmare. So hope I don't get bashed for even bringing this up.)

In CA, you must be licensed to work on short sales and there must be Disclsoures between all parties and Negotiator, between Brokers and Negotiator and the Fee (and who pays) must be Disclosed to all parties. 

For me, the 3rd Party Fee is paid by Listing Broker/Agent from the Listing Side of the commission.

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