How To Help Avoid Short Sale Negotiator Fraud.

I really wanted to share this information with you from a legal article with California Association Of Realtors.  I don’t know if you have heard any rumors about short sale fraud?  But, it’s definitely a concern for the banks.  It usually happens with third party negotiation companies.  Your real estate professional may unknowingly hire a company that is not working in your best interest as a homeowner.  Here is some really good information for you to ask about should your Realtor hire another company to negotiate your sale.

Just as REALTORS® struggled with loan fraud during the subprime heyday, they now face the rampant growth of short sale fraud in the subprime aftermath.  Short sale fraud comes in many shapes and sizes to wreak havoc on the unsuspecting sellers, buyers, and agents, often at the most inopportune time.

This legal article provides legal and practical guidelines for REALTORS® and their clients for dealing with short sale fraud.  This legal article also describes certain types of short sale scams, and explains how REALTORS® and their clients can distinguish between legitimate and illegal short sale activities.

How do I check whether a short sale negotiator is legitimate?

Factors to consider to help ensure that a short sale negotiator is legitimate include, but are not limited to, the following:

• Whether the negotiator and the negotiator’s employing broker if any are both properly licensed with the DRE or registered and bonded as a  foreclosure consultant.

• Whether the negotiator is qualified to perform short sale negotiation services.

• Whether the negotiator actually performs services to facilitate and expedite the short sale process.

• Whether the negotiator’s fee is fully disclosed in a meaningful manner to, and approved by, the parties and lenders involved.

• Whether the negotiator’s fee is reasonable, based upon, among other things, the negotiator’s qualifications to conduct short sale negotiations and the fee charged by other negotiators.

• Whether the individual paying for the negotiator’s services voluntarily agrees to pay for those services, and is given an opportunity to consult with a real estate agent, attorney, accountant, or other professional as deemed appropriate.

• Whether the negotiator does not get paid until after the negotiator fully completes each and every service the negotiator promises to perform.

• Whether the negotiator complies with agency laws, RESPA, laws against fraud, and other laws and MLS rules.

The above list is an illustrative, not exhaustive list of factors to consider for a legitimate short sale negotiator.  Compliance with all these factors does not guarantee that a short sale negotiator is legitimate or qualified.  Similarly, not complying with one or more factor does not necessarily mean, depending on the specific circumstances, that a short sale negotiator is a scam artist, as ultimately decided by a judge, jury, arbitrator, or DRE Commissioner.

We have had some bad experiences when representing buyers and interacting with these types of companies.  That’s why we have designations and current experience in negotiating our clients short sale.  We want to provide the best and direct service.  Also, we partner up with agents in CA & AZ to provide quickly facilitate the short sale.

Our designations, Certified with Prudential CA Realty and National designations below:

Short Sale & Foreclosure NAR certificatioin

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