Hi, I currently work as an independent contractor negotiating short sales for the homeowner's real estate agent. I'm confused about the new FTC rules. As long as the necessary disclaimers are provided can't I keep working as an independent negotiator? I've heard that realtors are giving their files to attorneys to negotiate. Anyone have an answer? Thanks, Tina

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Yes, but you can't charge up front fees.  Realtors too must have the same disclosures.  I think you need to be licensed in California and Connecticut to negotiate short sales.  Possibly in other states too.
Good luck.
I have a realtor whose main concern is lawsuits brought by homeowners. Don't the disclaimers cover that? Is there really a rash of lawsuits out there against realtors now with the FTC rules? Thanks
MN and WI also require a real-estate license in order to negotiate a short sale.
I don't understand.  If you're negotiating, then to be honest, the lawsuit would likely be brought against you, not the Realtor, which is why a lot of Realtors in my area outsource.  Is the Realtor concerned about the homeowner suing them and not you?  If you outline the role you both have in serving the homeowner, then truthfully the Realtor is only there to show, list, market the property and your job is to try to get the short sale approved and negotiated ... Find out what the Realtor's concern is.  Have documentation to cover it.  Even if you have MARS-FTC disclosures in place as a negotiator, it doesn't mean you can't be sued.

@ Cameron.  Thank you.  We should see if we can get together a list of states that have a licensing requirement.  I know there aren't many but it would be good to have on hand.
Hi Tina I have a company that negotiates short sales. In my state you have to be realtor to negotiate short sales. I negotiate for agents all of the country. As long as your state allow an agent to negotiate short sales I dont believe you will have any issues. I can only go by my experence and I have not had any issues, if you are good at your job and would consider taking some of my refferals let me know.
Yes I am currently looking to expand my business. Please contact me email [email protected]. thanks


scott dilley said:
Hi Tina I have a company that negotiates short sales. In my state you have to be realtor to negotiate short sales. I negotiate for agents all of the country. As long as your state allow an agent to negotiate short sales I dont believe you will have any issues. I can only go by my experence and I have not had any issues, if you are good at your job and would consider taking some of my refferals let me know.

FTC, MARS disclosures are only to let the public no your position on handling the Short Sales as well as other mortgage assistance. My understanding is the drive for it was because many professionals negotiating Short Sales were claiming they were affiliated with the lien holder and/or the government deceiving the public. They were also charging up front fees and locking the public into agreements in situations where it wasn't always their best interest. Basically as long as you clearly identify who you are, what you do and give them an opt out clause at any point during the transaction your in the clear. Of course it is all dependent on your state laws as well as some states that require special licenses if you don't hold a real estate license or are an attorney. You should always have an attorney as part of the transaction at the very least to review the documents the lender sends such as the approval letter to make sure the language is understood clearly and legally by the client. It is up to you, your client and your state laws on how involved you want the attorney in the pre-negotiation / processing as well as negotiation of terms of the approval if they are not to your clients liking. 

 

The FTC / MARS disclosures do not prohibit you in anyway from performing the services of a Short Sale. They just make sure you are acting honestly as well as ethically to the public and not in your own interest.

Clarification... CT and CA require different licenses.  In CA you need to be a REAgent, but only according to the general counsel of the DRE.  If you call the CA State licensing board and ask them if you need a license to negotiate mortgage debt they will tell you "no" but that it is in the works.  In CT you need to be a REAgent OR have a State Debt Negotiation license.  We are 3rd party processors too (in CT and CA among other states) and we just made sure all our docs are MARS compliant.  The fiduciary relationship of Agent to Seller is not relieved by using a third party processor as explained by our attorney in cases where the third party was introduced by the agent.

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