Dept of Real Estate in California cracking down on the "Short Sale Experts"

Went to legal update seminar.  California DRE is cracking down on the various claims and certifications of short sale "experts".

 

Agents crossing the line and providing "legal" consult.  Telling homeowners short sales is their best option when it could be their worse option. 

 

Those groups and individuals soliciting listing agents and promising them 3 commissions if they will give their short sale listing to them.........the scams abound...... Apparently the California Bar Association has also come down on attorneys associated with these scams. 

 

Homeowners in distress need to consult with a real estate tax attorney and/or at the very least a CPA before moving forward in a short sale.  Other options may better protect them.

 

How many times we have echoed this over the past years.....

 

Chase and US Bank are aggressively going after borrowers who defaulted and completed short sale.

 

She cited one case where the short sale was approved and upon further audit by the bank found questionable evidence of mortgage fraud and cancelled the short sale and now is doing investigation that may lead to criminal charges or fines on a loan that was apparently a  non recourse loan...If the party had let it foreclosed would not have subjected themselves to the intensive scrutiny. This was one of our fears early on and one of the driving forces behind clients  seeking legal counsel from the day we started doing short sales.   

 

 

 

 

 

 

 

 

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Terry, an RE license in no way qualifies you to do a short sale. There needs to be higher standards, qualifications, and barriers to entry (license) for those who negotiate short sales.
Joseph, after spending 30 yrs in the medical field, a medical degree does not automatically make for a great surgeon.....or physician.....in fact it is scary as to how many physicians are practicing medicine who should not.
Just the same with attorneys......A law degree does not automatically make one the best attorney.
In fact a colleague from connecticut was contacted by an attorney in the area wanting my friend to educate and explain the short sale process to him a month or so ago....
We could go on and on down the line.
So you are trying to tell us that you woke up one day and just became a wonderful short sale negotiator? Were you born sucking a short sale contract as you came out of the womb? Did you train and learn from others?
While I agree there is a lot in our industry who should not be doing short sales that is the same for many who claim to be short sale negotiators who do not have a real estate license and are basically pushing paper work claiming to be the saviour of all.
I do not disagree that higher standards should be set....NOT only for short sales but for real estate licensees period. It is apparent that the Ca DRE and C.A.R. are moving towards higher standards and scrutiny.
prior to me doing short sales, I was an executive for a mortgage lender, and I working in origination, wholesale, and secondary marketing.

My point is that a RE license is not enough. There needs to be a specialized licensing requirement to negotiate short sales. This will raise the credibility of agents, because right now, frankly, every survey I have seen has the RE industry's public perception at an all time low. This will keep the yahoo agents and third party practitioners out of the game and raise the standards for everyone. This can only be a good thing. If you are the great and knowledgeable agent as you claim, you should embrace these changes.
My dearest Joseph, I don't think anyone would disagree, including myself, if there was truly a short sale designation or licensure taught by those who really have been in the trenches. that many would embrace as you say that option. including myself.... whether you agree or not that realtors should be involved in short sales remains to be a point of disagreement. Many of the certification programs are taught by those who have not really performed many, if any ,short sales...... If presented with a program taught by an actual loss mitigator or negotiator from the banking industry would definitely raise my interest level.
All of the licensing in the world will not raise credibility UNLESS there is accountability ....That is where we have fallen short dearly by local and state associations....who now appear to be moving in the direction of holding accountable and raising standards.....to truly be recognized as a Professional there should be limits to new agents entering on a yearly basis and the standards and education to sit for realtors license definitely needs to be addressed...It has been brought up that perhaps everyone should have a brokers license instead and eliminate the real estate license. I personally believe real estate as we have known it has and will continue to change. Back to the point where we are in reality now, I think I made it very clear that each day brings something new...I am on this list serv because of the information, networking , ideas and help given. I believe Mike has done a wonderful job and continues to seek ways to improve , grow and make a viable resource of information. You state RE license is not enough to do short sales, I state that California requires a real estate license.. I do not necessarily disagree with the fact that a real estate license in its self is not enough but in our state that is what is required . Most of us have attended seminars, classes whether online or live on a continuous basis as well as to be involved with various short sale list servs in order to stay abreast of the changes and to continue to learn .... If we are presented with specific short sale licensure that is indepth and taught by those as stated above in the trenches most will jump at the chance for such licensure including myself.
It is going to take much more than special licensure though to change our industry and move it to the professional level most of us would like to see. But would be a step in the right direction.
So very happy to hear they are clamping down on these folks!
Agents are next

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