Focusing on your comparative advantage and avoid the risk side of short sales

Ask yourself – as a real estate agent – do you want to be collecting all of your clients personal financial information, bank statements, tax returns and be the one communicating all of that to the loan servicer? Do you want the regulatory risks that come with the MARS act and the liability exposure this opens you up to?

The State of Washington Department of Licensing and Department of Financial Institutions say it well in their recent document Short Sales - Guidance for Licensees:

The Departments of Financial Institutions and Licensing recognize that short sale service providers need specialized expertise. Short sales are complicated transactions because they require that the seller negotiate at least two separate agreements. One is the purchase and sale agreement with the buyer and the other is the agreement with the creditor(s) to accept less than the amount owed and secured by the property.

Entities engaging in short sale negotiations for compensation must obtain a license under the CLA or the MBPA.. New Federal Regulations may also apply to you.

A successful short sale means negotiating the terms and payoff with the lien holders. Under new Federal regulations from the FTC, anyone negotiating with the lender on behalf of a homeowner is a Mortgage Assistance Relief Services (MARS) provider under Rule - 16 C.F.R. Part 322 - FTC File No. R911003. Penalties for non-compliance with the MARS rule can run $11,000 per day.

At Nest Financial we understand those risks. As a licensed mortgage broker in the State of Washington, Nest is fully compliant. Our founder Brian Heberling served on the joint short sales task force with DOL and DFI and was instrumental in helping create the latest short sale regulations. Nest complies with the MARS rule, and we work only with fully compliant partners.By working with us you have more time to do what you do best – negotiate real estate deals between willing buyers and sellers.