Certified Short Sale Negotiator | Real Estate Negotiation Institute

Posts Tagged: Certified Short Sale Negotiator

Who Can Negotiate Short Sales?

Thursday, July 28th, 2011

A popular question in our Ask the Expert section as well as from our students: Who can legally negotiate a short sale for profit? The answer is complicated and dependent on the state where you live. The recent FTC MARS regulations are at the heart of this question, as well as your local real estate department’s specific interpretations of those regulations.

Most states agree that negotiating short sales as a listing agent is incidental to your real estate practice and therefore in line with the terms of your licensing and fair compensation. The gray area is if you can get compensated for negotiating short sales for other agents. Some states have declared that this is strictly prohibited, that the only “third party” negotiators allowed are licensed attorneys. Some states require additional licensing, such as a mortgage loan originator’s license from NMLS, with the idea that additional compensation requires additional licensing beyond what is common in real estate practice.

Different licensing bodies also have differing interpretations of the FTC MARS regulations. The real estate associations believe that you must be a licensed real estate agent to do any kind of short sale negotiations. The attorney associations believe that nothing less than a law practitioner’s license will do. And the mortgage industry has been lobbying recently to make the MLO license a pre-requisite, believing that they are the best party for the job. Banks and lending institutions have weighed in by insisting that they deal directly with the homeowner/borrower, though they will work with anyone who the borrower has explicitly authorized to speak on their behalf.

The specific interpretations and guidelines for short sale negotiation in your state must be determined from your department of real estate or other licensing body. The RENI encourages you to speak with them and your real estate broker.

The RENI’s popular Certified Short Sale Negotiator course does not provide a license of any kind and does not provide interpretation of the regulations in your specific state. It will, however, give you the skills to be a better negotiator for short sales once you have verified the licensing requirements for your state.

Announcing the CSSN Course Available Online

Wednesday, May 18th, 2011

With the housing market still feeling the ravages of the economic crisis, the Certified Short Sale Negotiator (CSSN) course has become one of the most popular courses offered at the Real Estate Negotiation Institute (RENI). Now the RENI, in conjunction with Asset Plan USA, is making this popular course available online.

The information presented in the online CSSN course was developed by a team of experts with decades of experience, and is backed by the full reputation of the RENI – a premier negotiation resource for the real estate industry. CSSN is now one of the most practical short sale negotiation training courses on the market.

Short sales are expected to remain a dominant force in the real estate industry for the next three to five years. As a real estate professional, short sale negotiation is a fact of professional life. The online CSSN course helps you navigate this complicated transaction, and equips you with the best and most relevant skills needed to close short sales successfully.

Begin your online training for a Certified Short Sale Negotiator designation immediately and be ready to succeed in this volatile housing market for years to come.

Negotiating Short Sales

Monday, April 4th, 2011

Question: If a short sale takes place and there is a second mortgage on the home can both balances be negotiated away so that the homeowner has no further debt? In other words: House has primary mortgage of $500,000. Second mortgage of $50,000 but house sells in short sale for $450,000. Can the remaining $50,000 on the primary plus the $50,000 on the 2nd mortgage be negotiated away so that no debt follows or accrues to the seller? And can should that be done up front when entering the short sale process?

Answer: Yes, all liens have to be satisfied for the property to close, thus both lienholders agree. Depending on the state and anti-deficiency laws, this can be somewhat or very difficult. This negotiation is part of the normal short sale process and depends heavily on the buyer’s offer and total deficiency for the lienholders. It also depends on the seller’s financial situation. Some banks are insisting that the remaining deficiency be settled by a promissory note or cash at closing from the seller. Many banks don’t want to give up the right to go after the seller for any deficiency, so the language of the settlement is critical. Generally, the first lienholder is the foreclosing, and thus controlling entity, and would thus determine how much money goes to the second lienholder. Typically it is a very small amount, $3,000 – $5,000, and typically the second will agree since their BATNA (in foreclosure) is not very good. However, some junior lienholders can be very difficult and can force foreclosure by refusing reasonable settlement terms. Usually you can’t negotiate this settlement up front, since the most critical piece of information (the amount of Buyer’s offer, and how the funds are divided) is missing.