Be Careful Advertising Yourself as a HAFA or Short Sale Specialist

I thought I would help shed light on some myths that are being shared publically by real estate Agents about HAFA, as they may be miss-leading.
It may be known that Agents have a window period to capture as many distressed homeowners as they can, place them under their wing before lenders start referring Affiliates or Servicer referred Agents. The style by which some Agents are lead generating may place them under scrutiny.

Of the many variants I have seen circulating is a mailer or flyer that states “I am a Short Sale Specialist” or “I am a HAFA Specialist and I will get you $3,000 from your Bank to move” Another is “I am a Short Sale Specialist and have all cash Investor Clients that also negotiate with the Bank” (This one being the most litigious in my opinion).

The Department of Real Estate (In the State of California) has placed Deputy Investigators on Duty to harbor the phones for tips and reports on these types of public representations as well as outright Mortgage Fraud.
The pressures are surmounting on many Agents as they try to navigate the Short Sales process, one that none of us can accurately define. We have a working definition on what a Short Sale is, and while HAFA promises help for non-exempt homeowners, many loans are still currently exempt due to factors such as where and how the loans were originated.

While Obama’s program brings promise to many defaulted homeowners, it’s procedural mechanics and guidelines still leave many open doors for miss-haps in closing these deals as lenders may not provide for certain liens and title matters prior to their Short Sale Pre-Approvals.

It is suggested that in the many case files of Investor defaults, the non HAFA zone will continue to exist, making it every Agents responsibility to continue educating themselves on the Short Sale process which is projected to continue throughout the next two to three years.

When advertising yourself as a “Short Sale Specialist” or “Pre-Foreclosure Specialist” or “Consultant”, you are wise to study up on the “Standards of Practice” Articles and in the NAR or Local Associations “Code of Ethics”. The use of the term “Specialist” comes with it an added responsibility of covering all your bases including whatever it is that you may not know that you don’t know.

Lastly, MLS rules prohibit the use of commission reductions due to the pass on cost of a third party Negotiator. While the MLS “Private or Agent remarks” section provides to warn or disclose to Selling Agents that they may share a Bank imposed commission reduction, it is an MLS Violation to directly reduce an commission offering to impose a Negotiator’s fee to the Selling Agent or Buyer.

I have the answer to this too… though you’ll have to look out for my next article.

Copyright © Bryan Ridgley


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