One of the things that I see that pops up every so often when doing a home search are the Short Sale Listings that utilize a Third Party Negotiator as a Facilitator of the Short Sale. This Facilitator apparently is involved in direct negotiation with the Lender of the Short Sale, Homeowner, and you, the Listing Agent/Broker, are relieved of that responsibility. I will not comment on who I have seen this from, nor will I comment on the Listings I have seen this with, but I DO ask every REALTOR to think about the Code of Ethics in relation to your Listing and your responsibilities to your Listing.
Whether this practice is right or wrong are for the Courts to decide, but I do not think that Freddie Mac would devote a lot of space on their website, if this was not a concern. Please read the attached link:
http://www.freddiemac.com/singlefamily/news/2010/0412_payoff_fraud.html
If you want to list Short Sale properties, I urge you to become educated in the Short Sale Process before diving into a situation that could cause more grief to all concerned parties. If you, the Listing Agent, are educated in the process, you may not care to utilize, or need, a Third Party Negotiator. Additionally, have your Broker check your files for accuracy, completion, necessary disclosures, and the perception of potential fraud.
Managing Brokers should remember that Fraud is not covered by E&O insurance, and when Lenders see “back to back closings” on the same property, they know that REALTORS and Title Companies are involved.
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