Home Selling in Kansas City>Question Details

John, Other/Just Looking in Kansas City, MO

do you need a license to process a short sale?

Asked by John, Kansas City, MO Sat Sep 3, 2011

who can process s short sale and do you need to be licensed?

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A loan modification, short sale, and a deed in lieu are consider a mortgage assistance relief service under the federal mortgage assistance relief service rule, Regulation O.

a MARS provider is subject to the regulatory authority of the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and state regulatory agencies. Some states require a mortgage lender, servicer, or broker license to offer loan modification services.

Some states may not offer an exempt of attorney's for a mortgage license.

Under the MARS rule, an attorney is exempt against the up-front fee rule and has other requirements.

Experience matters and full disclosure of their services through a written agreement is required under the rule.

http://www.delmarvahomerelief.com
0 votes Thank Flag Link Tue Nov 18, 2014
Process? A lic real estate.agent may sell a short sale. Only an attoney.may negiotate a.contract modification for a short sale.

Best of luck
0 votes Thank Flag Link Thu Apr 4, 2013
Any licensed real estate agent can process a short sale, however those with experience and training have greater success in closing them smoothly. In the Kansas City area, visit http://KCAvoidForeclosure.com to learn more about the benefits of a short sale over foreclosure and other options, including government programs which may be available for you.

Rick Bell - Realtor
Licensed in Kansas and Missouri
Better Homes and Gardens Real Estate Kansas City Homes
11150 Overbrook Road, Ste 150
Leawood KS 66211

Ph 913-735-3613
Rick@KCRealtyService.com
0 votes Thank Flag Link Thu Apr 4, 2013
To simply process them, usually NO. There are many different variables and state practices. Georgia for example is VERY strict when it comes to these things. Check out -
0 votes Thank Flag Link Fri Nov 18, 2011
Short Sale certification classes have little to do with conducting a real short sale. I found the short sale certifcation class to be counter production to the actually process.

I have been doing short sales since the late 1990s.

Any real estate transaction should be handled by a professional. That saying the SELLER will be hevaily involved with all the documents that need to be submitted again and again.

Good Luck
0 votes Thank Flag Link Thu Sep 22, 2011
If you mean a Real Estate license, well yes you do. Normally Realtors who work Short-Sale also have many hours of additional training as well as certification for Short-Sale and REO business.
0 votes Thank Flag Link Thu Sep 22, 2011
No. In today's market a licensed real estate agent can work toward various certifications related to the short sale processes. The courses are basic in nature and offer a refresher for those who have a financial back ground in banking working as real estate agents. I started working in short sales in early 2007. My banking back ground of 15 years moved these deals forward to close in 30 days. Today, with everyone trying to do short sale deals my biggest road block has been communication with newly trained bank representatives/agents who do not understand my questions or the short sale processes.
0 votes Thank Flag Link Thu Sep 22, 2011
No, not in most states. Here is a VERY good discussion about this same topic - http://www.theshortsaleguide.com/profiles/blogs/a-license-to…

Don't trust your short sale to just ANY agent, especially one claiming to be an expert after taking a weekend training class.. Experience is everything. Check out -
0 votes Thank Flag Link Tue Sep 20, 2011
John,

In today's market, the banks want to see the properties listing with a Realtor so they know it is being offered to the masses. I know of investors who negotiate their own short sales but for the most part, these properties are located in areas that are not highly desireable.

I specialize in short sales and have been helping homeowners for over 4 years now. Part of the requirement of a short sale is to provide a listing agreement to the bank. To be honest, I don't think someone negotiating a short sale they are buying gets them any better of a deal. I just think it is wiser to use a Realtor from the get go in the event you spend a large amount of time to find out they want it listed.

Let me know if you have any other questions regarding the process. God Bless! Sheila Vardakis
0 votes Thank Flag Link Sun Sep 4, 2011
If you are the home owner you can initiate the process but most lenders require that the home be listed by brokerage. Are you trying to short sale your home or are you interested in a short sale? Feel free to contact me and I would be happy to talk with you about the process.
Sherri Oaks
Reece & Nichols
816/365-8660
Web Reference: http://www.sherrioaks.com
0 votes Thank Flag Link Sun Sep 4, 2011
Typically if you perform real estate services for compensation, you will need a license. Services include Advertising, Buying, Appraising, Renting, Selling, Auctioning, lease, or exchanging real estate. If performing services for no compensation (for yourself), a license would not be required. To pursue a short sale with no experience would be a real challenge!
0 votes Thank Flag Link Sat Sep 3, 2011
John,
In many states a license is required to advise buyers or sellers regarding Real Estate and a Mortgage Lenders License is required to advise borrower's or negotiate on their behalf. Some states permit Licensed Real Estate agents to negotiate short sales on behalf of their clients, but there are still limits to what a Real Estate Agent can discuss with a seller.
I've been a licensed lender and agent, but I still refer my short sale clients to an attorney to review all of their options and understand the ramifications of a short sale.
As far as "Processing" the paperwork, much of what happens during a short sale process is sitting on hold, faxing paperwork and obtaining (or hoping to obtain) any update in status. Provided the processor doesn't negotiate on behalf of the seller or advise the seller I don't see why this couldn't be done by a competent clerical person under the supervision of a licensed person.
0 votes Thank Flag Link Sat Sep 3, 2011
Are you an investor or just looking to purchase a home? My advice, do not pursue short sales unless you have 8-16 months to wait on the purchase. Even after waiting months and months it may still not happen for a variety of reasons. If you are looking to purchase I think a better route are REO's. They are still different then short sales but the oppertunity for a sucessful deal is much better. Let me know if I can help, I am North of the River and have a great deal of experience at handling distressed properties.
0 votes Thank Flag Link Sat Sep 3, 2011
What do you mean by "process"? Are you wanting to buy or sell?
0 votes Thank Flag Link Sat Sep 3, 2011
You can process a short sale if you know how to deal with the bank that owns the property.
0 votes Thank Flag Link Sat Sep 3, 2011
You can certainly BUY a Short Sale from the Sellers and the Bank.
But to have access to the Listing, you would have to be a Realtor:
There are a few exceptions to this, where some New England States will allow a transaction using an Attorney. I do not believe that Missouri is like that.

Because Short Sales and REO's are channeled through Reators, both for Listing and Buying, you should contact a good Buyer's Agent if you want to buy one. A Buyer's Agent is free to you, paid by the Bank.

Good luck and may God bless
0 votes Thank Flag Link Sat Sep 3, 2011
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