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 Kristin Johnsen on
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I think you right, most are bringing in the majority their short sale business from real estate agents. But the way I do it is, the seller is one that agrees to do the short sale and agrees for me to work the file. The agent may refer us just like I would if I knew someone in need of a real estate agent but our companies agreement is with the sellers. We market to both homeowners and agents in our area.
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Permalink Reply by Jeff Payne on
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Hi Kristin,
thanks for the reply, it is great to see both sides of this topic. In my area, the 3rd party companies, mostly attorneys who own title companies are marketing almost exclusively to the agents. Their pitch is that the agent can save more time in order to get more listings or sell more buyers............. I have not seen any types of print or web marketing targeting underwater homeowners in my area, could be doing direct mailers, not sure.
How is the market in Lafayette? I am actually suprised that you see alot of distressed properties, didn't think that market really overheated there during the bubble. I probably already told you this, I am a Purdue Grad and my family still lives in Lafayette or withing a 50 mile radius, Monticello and north.
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Yes, I remember you mentioning that. The market here is actually steady with sales, the prices are really low though due to the economy. Almost everyone that purchased their homes 5 or 6 years ago is under water. Which is most places these days.
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How much has the market declined from the peak? Our single family market is down 45% on average from the peak in late 2005/early 2006. Our condo market is far worse, some values down 70%
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I would say the market here has dropped about 20%, its not as drastic as other major areas.
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Permalink Reply by Deanna Dopslaf on
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In New Mexico it is not legal for most third party negotiators to negotiate a short sale, although many continue to do so. You must be licensed. In addition, you must be a party to the transaction ie. the listing agent.
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Permalink Reply by Kevin - Greenville, SC on
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Short Sale Agent Update:
License Checked With Each Initiation
Bank of America routinely monitors each short sale initiation in Equator to determine if the user's licensing information is valid. Users who are found to have invalid license information will be prohibited from initiating short sale transactions with us.
If we have specific questions regarding your license, we will contact you.
Action required
To avoid any disruptions to the short sale process, you should update your licensing information and profile in Equator whenever there are changes in your professional status. Please complete the following steps anytime you need to update your information:
- Log in to Equator.
- Go to the Manage Information section and select Edit Account Information.
- Update your License Information (license number, expiration date, state issued). In addition, update any other information that may have changed, such as your contact phone number, your address and your Errors & Omissions insurance.
- Click Save Your Changes to submit.
Please contact [email protected] if you have questions regarding the license verification process.
Visit the Agent Resource Center at bankofamerica.com/realestateagentfor educational guides, news and resources to help agents complete a short sale at Bank of America.
- Log in to Equator.
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Permalink Reply by Donna Clayton, Broker, MBA on
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How difficult would it be for you to get a real estate license? Given your experience, the coursework will probably be easy for you to grasp, and you will most likely pass the exam with ease. A real estate license will also strengthen your credibility as a short sale negotiator. Take a crash course and the exam. PROBLEM SOLVED!!
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Permalink Reply by Rodney Mason on
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I know that the Georgia Department of Banking & Finance requires that only a licensed Mortgage Loan Originator be allowed to negotiate a short sale or loan modification. They have issued numerous Cease & Desist orders to individuals and companies that are not licensed MLO's.
http://dbf.georgia.gov/vgn/images/portal/cit_1210/32/5/159093506Rea...
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Permalink Reply by Joseph Alfe on
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how were you on equator before? A license was always required...
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To all three that have questions concerning my reasoning for helping homeowners with their short sale:
First, I don't want to be a licensed real estate agent,sure it may be easy for anyone to go take a test and become licensed but I have no desire to sell real estate, Second,they don't teach anything in the real estate courses that pertain to my job. So there is not a need for me to hold the license. I do not sell real estate I simply help homeowners and real estate agents work with lenders because they cant or wont.
As for the laws in Georgia, I don't live in Georgia and I don't negotiate short sales in Georgia. I live in Indiana and have done everything required by my state to negotiate debt on behalf of homeowners. And, if you have read through this previous discussion you will see that in our state, real estate agents are NOT allowed to negotiate debt themselves.
If I ever choose to venture into Georgia, I will make sure that I get the proper licensing required.
The Equator issue, the only bank that makes you prove you are a licensed agent is Bank of America, and don't get me started with them. That is a huge liability at least in our state where agents arent supossed to negotiate debt but Bank of America is making them. But within our company we have an attoreny on staff and we use his log in since their rules are licensed agent or attorney.
Thanks everyone!
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Permalink Reply by Smitty on
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I agree with what Kristin said 100%. Selling real estate and negotiating short sales are two very different professions. What I will say is that having a thorough knowledge of real estate does assist with negotiations. I've been able to talk to the banks lenders and tell them things about an area of that community, town, or house that may affect the value. Now, I certainly can get that from a knowledgeable agent, but I have actually worked with MANY agents who are CLUELESS about how to properly value a property, deal with a bpo agent, fill out short sale paperwork etc., so I guide them. On the flip side, I PREFER to work with an agent who does know a bit about short sales because it makes my job easier. I can't tell you how many times I've had an agent price a property for lets say $160,000 and then take a $100,000 offer???? Ok, I get that investors want a deal, but WHAT is the property actually WORTH? When you tell them to take the market value and deduct the repairs, their eyes glaze over.
Ok, I'm rambling and off topic, but I don't think you need a real estate license to be a great short sale negotiator. There should be a separate license all together for short sale negotiating.
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