This post will serve to gather a list of all the states that require a real estate license to negotiate short sales.
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Are you referring to Senate Bill 152? Is that where it is stated?
thank you!
Michael Campus ABR,SFR,SRS said:
Nevada does not require a real estate license to negotiate short sales. NRS 645F is where you will find the authorized list, which includes many different types of professions, not all of which may be otherwise licensed by a different entity. It depends on who the employer is. Example 1- an escrow agent may negotiate, and they are obviously licensed. Example 2- an employee of a non-profit housing assistance entity does not need any type of licensing can negotiate. Employees of modification licensed entities do not need to be individually licensed either.
Nevada licensed real estate agents are exempt from mortgage division requirements as long as their activities are real estate related and not for the purpose of obtaining a modification.
Washington State. My conversation with DOL and their requirements is to whether or not it is a state or federal bank negotiating.
In California, you must have a real estate license or be a lawyer to negotiate a short sale for compensation. Of course, that doesn't stop the uninformed from doing it or taking a risk that they'll get nailed.
Elizabeth Weintraub
Broker-Associate #00697006
Lyon Real Estate
My conversation with WA State DOL got into whether it was a state or federal bank doing the negotiations and the relationship of the parties in the negotiations, and the jurisidiction seemed to be a concern that each agency had to deal with.
We are researching some of that and trying to get attention to the negotiators in general and their ability to effectively do their jobs based on the knowledge of the programs such as HAFA they are required to operate under.
I don't think the banks should be allowed to hide behind unprofessional negotiation companies that are noncompliant or unwilling to implement or administer the programs available for our clients, and everyone else that need the benefits of something as important as MIP insurance, including and especially the banks.
Cameron, Here is what South Carolina says about Short Sale negotiators - http://screaltors.org/news/2010/10/short-sale-negotiators-must-be-l...
Kevin,
If you research the act that the SC Realtors cites, it does not cover all short sales. It is citing a consumer protection code for consumer loans, which by definition does not include first mortgages (unless originated after Jan 1st, 2010) or any mortgages taken out on a non owner occupied property (investment). It only applies to second mortgages on owner occupied originations.
Unless there is a second mortgage on an owner occupied property, then the SC consumer protection code does not apply.
This is a classic example of lawmakers acting late, then acting wrong or overreacting. An RE licensee or debt adjuster or mortgage broker being qualified to negotiate a short sale just because they have that license? Beyond stupid.
The only way to really protect the consumer and have a minimum competency established is to provide for A SHORT SALE NEGOTIATION LICENSE. Ya ya the agents will cry and whine that it's unnecessary, but it clearly is. An RE licence CLEARLY does not qualify you to do short sales. If you are a competent agent, sitting for some additional coursework to get a special license is good for credibility, and will keep the yahoo agents out.
I have written a proposed bill that addresses this for IL and I am pushing it through. Don't cry for our agents though, because I proposed an extra 1% to be allowed to be paid to listing agent by buyer or seller for the tremendous amount of extra work that is involved.
I could not agree more...not saying that realtors cannot or should not negotiate short sales, just that it should not be required to be a realtor, and being a realtor should not necessarily qualify.
In reading this Sam I think each poster on this thread should have put the corresponding law to their state. Law is certainly different than "opinion". I know in my state the law that allows unlicensed individuals to negotiate. I also know two differing "opinions" from the Banking Dept and Ass. of Realtors.
Although if there IS NO LAW, then I suppose we can't post it correct?
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