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 Natalie Arndt on
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I have a graduate degree in counseling and I speak 3 languages but that does not qualify me to do a short sale.
Despite the fact that I have more education than most of my colleagues I have to disagree with you.
Being licensed in a real estate is a MINIMUM requirement. Than we are looking at experiences and a great track record. There are plenty of us equipped to do short sales with great record.
Short sale is just another skill that realtors can easily learn. If they choose not to learn than at least they need to hire someone who is not only licensed but also able to facilitate and close transaction successfully.
Learning to do short sales is anything but difficult. Short sales do take a lot of time, diligence but there are courses out there that one can take and learning shall never stop even after realtors leave the classroom.
When we sign that listing agreement we have fiduciary duties toward our clients and it is completely deceptive to tell them that we will do such and such and turn around and outsource our work to someone who is NOT EVEN LICENSED.
Your argument would stand no ground in a courtroom.
It is frightening that there are realtors that even think this is an acceptable practice.
NAR needs to do a better job in catching people who are hiring people who are practicing without the license and making them responsible. Thanks GOD for our licensing boards. This field would have been in complete chaos!
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Permalink Reply by Kristin Johnsen on
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I don't think its really a matter of getting my license, I had my California real estate license for years and know that it would be a matter of taking the test here and becoming licensed. I just dont see how me having the license will make a difference to anyone but Bank of America. It holds no value for what I do and is not needed. Licensed real estate agents are not allowed to negotiate debt on behalf of the homeowners without proper bonding and insuring separate from the license they hold to be able to work the short sale.Having a real estate license does not make it allowed in our state.
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Permalink Reply by Richard on
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Is there reciprocity between the two states real estate boards, if so all you have to do is order your license.
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Permalink Reply by Jeff Payne on
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There was when I moved to Florida, I just had to sit for the state test.
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If the agent is bonded and insured with the state's Attorney General office than they can, their license and E&O insurance will not protect them in the event that a client or lenders have issues that arise. Brokers and Attorneys are the only person exempt from that law. Please read IC Code 24-5-15-2
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Very interesting, thanks for posting that
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I just read the IC 24-5-15-2 but it does not seem very clear to me, does it mean anyone with a brokers license or a principle broker? I had a brokers license in Indiana but was not the prinicple broker.
The term "credit services organization" does not include any
of the following:
A person licensed as a real estate broker under IC 25-34.1
if the person is acting within the course and scope of the
person's license.
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California and Indiana do not offer that, I would have to retake the Indiana state test.
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I do know, in civil services involving human life such as roadway, bridge, HVAC, architectural/building designs, etc. licensing is always required, not to mention what's required in healthcare.
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E&O insurance in real estate is cheap, you could buy a cup of coffee everyday for what E&O costs. I pay $15 per month for E&O.
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