Comment

Comment by Jeff Bradshaw on January 19, 2011 at 8:42am

Pretty creepy on hold music they have don't they?

Comment by Wendy Rulnick on January 19, 2011 at 8:39am

45 minute hold so far and the most batty hold muzak

 

Comment by Jeff Bradshaw on January 18, 2011 at 8:17am

Thanks for the information. I know that the 3rd party companies that I use are not charging up front ie Title Companies and state licensed companies. They charge at the end. The attornies here in town are all charging $3,000 and up right up front to the clients. Figures since attornies write the laws they are still allowed to charge. Anyway most client just do not have the money to pay this. Your article also points outs that  negotiating a short sale as a Broker may be crossing the line into practicing law even though the current laws still allow it? That is why I send my shorts out to licensed 3rd party companies I want to take that part of the liability off of me which is what my company attorney told me to do a couple of years ago. Yes I agree  find someone else to do the negotiating and do not take on the burden but of course also find out what the federal and state laws are in your area. Great info

Comment by William C. Black on January 18, 2011 at 7:56am

I am in Washington State but FTC is federal... here is what our local NMLS attorney interpreted from the law...

short%20sale%20FTC%20changes.pdf

Comment by Jeff Bradshaw on January 18, 2011 at 7:51am

William what state are in? I know that about a year ago Nevada passes laws that allowed 3rd parties to negotiate short sales and charge for them. These 3rd parties do not have to be an attorney but they do have a separate license that the state requires and have to put up a bond also to get the license. Beside the title companies there are a very small handful of people that have been able to do so here in Nevada. But even here some of the Title companies have been licensed and will do it for you

Comment by William C. Black on January 18, 2011 at 7:29am

I would caution those hiring a third party negotiator to be aware... if  they do not have their name on the listing agreement as a co-agent and  they are negotiating terms with the bank you are in violation of up to $11,000 a day. Of course this is all about the interpretation of law so follow the rules or attorney up.

 

FTC Short Sale Law

 

Also you cannot charge an additional fee to "negotiate" the existing contract (unless you are an attorney and even then there's stipulations).

I do not say this to argue but state the facts..... the law is the law until it changes.

Comment by Jeff Bradshaw on January 18, 2011 at 6:23am

No we do not disagree. The company here in Nevada that I use has a policy: If the homeowner would like they will fight to remove deficiancy, fight to remove prom notes, fight to not have money at the closing. Here are the fees:

$895 for basic negotiation

addition 1500 for a deficaincy waiver over 50k and no prom note or money to the table.

Here is the sad part. Homeowner do not want to pay the extra 1500. Here is the difference between you and I. A homeowner hires me to sell their home. My job is not escrow, and not negotiation. If that is to be my job then I will charge for it. I have been selling homes for over 20 years I went through the short sale market of California in the mid 90's. Our job is to sell homes there are other professionals that make their living doing the other jobs required in the sale ie escrow, title, loan officers, appraisals, it is not my job to wear all hats. So when it comes to short sales there are professionals that do that. If the seller does not want to pay for the full service it is the sellers choice.

Comment by The Negotiator on January 18, 2011 at 5:47am

I always thought the job of negotiating a short sale for a homeowner was to get the best terms possible for them. I guess that's where you and I agree to disagree.

I always tell agents around me this one bit of advice...

 

"DO NOT GIVE YOUR NEGOTIATIONS TO A BIG FIRM OR SERVICE WHO HAVE A HUNDRED FILES! YOU ARE JUST ANOTHER FILE IN THE STACK AND THEY ONLY CARE ABOUT GETTING THE LOA, NOT THE TERMS IN WHICH IT GETS APPROVED! THIS A TOTAL 100% DIS-SERVICE TO THE HOMEOWNER."

 

But, hey, that's my opinion. Don't take my word for it though, find out yourselves!

Comment by Jeff Bradshaw on January 18, 2011 at 5:37am

I generally run a consistant 60-70 short escrows at one time. I am not going to spend tons of time fighting the lenders. Most of them I do not process anyway. I have a company which is licensed here in Nevada to do that. The prom notes show up more consistantly on people that are current on their mortgages. The ones that are behind which is most of them do not seem to get them. A good example is Ibm just sent me an approval last week asking the seller sign a 12k prom note. The Negotiator last month said right up front that the MI company(Radian) would require it since the sellers were current on the note. I personally like BoA now with the equator system, it is very easy to negotiate and you see what is done prior to sending it off to MI or investors. More lenders should do the same. Beside I get BoA approvals within 4 weeks vs. lenders like Ibm taking 4 months.

Comment by The Negotiator on January 18, 2011 at 5:13am

Jeff, if you are seeing that "over and over" then I would suggest a new negotiator. I also hope you are not just saying "OK" to the lender when they ask for a prom note or cash contribution. Fight them! Good luck.

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