In the State of Nevada, short sale negotiating falls under the category of "loan modification or foreclosure consultant" as defined in Assembly Bill 152 which modified NRS Chapter 645F. You can read AB152 here: Download AB152_LoanMod_ForeclosureConsultant
In summary there are three options for negotiating short sales in Nevada:
- Attorneys
- Properly licensed companies/3rd party negotiators per the Mortgage Lending Division
- A licensed real estate agent as a part of a real estate transaction.
As excerpted from the RE Division position statement:
There may be no separate or distinct payment or compensation for performance of
activities defined as loan modification, foreclosure consulting or providing of covered
services outside of a real estate transaction.
Activities that by definition might include aspects of “Loan Modification Consultant,”
“Foreclosure Consultant,” or “Provider of Covered Services” must be part of a real estate
transaction. As such, a commission paid to a licensee through a real estate brokerage as
a result of those activities defined in NRS 645.030 and/or NRS 645.040 shall serve as
evidence that the activities engaged in by the real estate licensee were “acting under the
authority of their license.”
Guest Contributor, Steve Kitnick provides the following details and commentary on the subject:
According to Bruce Alit, Chief Compliance Officer at the
Nevada Real Estate Division, a licensee can negotiate short sales with
lienholders providing the licensee is part of the real estate
transaction, as evidenced by being on the "Duties Owed."
Read the Division's position statement on this topic: Download NVRED_MortgageLending_Position Statement_101509
Attorneys may handle short sale negotiations because they are exempt under NRS645.380(1).
3rd party negotiators (other than attorneys) must be licensed under the guidelines set forth by the Nevada Mortgage Lending Division. Click Here for Licensing Requirements. Here's a list of licensees and applicants who are eligible for conducting Pre-Foreclosure and Loan Modication activities, according to the Nevada Mortgage Lending Division - Check Here for the List
- Is the company you're using licensed to negotiate pre-foreclosure sales (short sale) ?
- Is a real estate licensee who is not a party to the transaction handling the negotiations?
- Is your unlicensed/virtual assistant doing it?
- Is the title company doing it?
According to Mr. Alit, you will be held accountable if you hired or recommended for hire, an unlicensed loan modification / pre-foreclosure consultant. What are your thoughts or comments on this subject?
Steven Kitnick, CNE, CSP, GRI, RRG
Steven Kitnick Seminars, LLC
www.shortsaleprofessionalnetwork.com
(702) 255-8722
