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:

1. Attorneys
2. Properly licensed companies/3rd party negotiators per the Mortgage Lending Division
3. 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 o r 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.”

Nevada Revised Statutes - Covered Services and Foreclosure Consultant Defined

NRS 645F.310  “Covered service” defined.  “Covered service” includes, without limitation:

      1.  Financial counseling to a homeowner, including, without limitation, debt counseling and budget counseling.

      2.  Receiving money for the purpose of distributing it to creditors in payment or partial payment of any obligation secured by a mortgage or other lien on a residence in foreclosure.

      3.  Contacting a creditor on behalf of a homeowner.

      4.  Arranging or attempting to arrange for an extension of the period within which a homeowner may cure a default and reinstate an obligation pursuant to a note, mortgage or deed of trust.

      5.  Arranging or attempting to arrange for any delay or postponement of the time of a foreclosure sale of a residence in foreclosure.

      6.  Advising a homeowner regarding the filing of any document or assisting in any manner in the preparation of any document for filing with a bankruptcy court.

      7.  Giving any advice, explanation or instruction to a homeowner which in any manner relates to the cure of a default in or the reinstatement of an obligation secured by a mortgage or other lien on a residence, the full satisfaction of the obligation, or the postponement or avoidance of a foreclosure sale.

      8.  Arranging or conducting, or attempting to arrange or conduct, for a homeowner any forensic loan audit or review or other audit or review of loan documents.

      9.  Arranging or attempting to arrange for a homeowner the purchase by a third party of the homeowner’s mortgage loan.

      10.  Arranging or attempting to arrange for a homeowner a reduction of the principal of the homeowner’s mortgage loan when such a mortgage loan is held by or serviced by a third party.

      11.  Providing the services of a loan modification consultant.

      12.  Providing the services of a foreclosure consultant.

      (Added to NRS by 2007, 2854; A 2011, 3639)

      NRS 645F.320  “Foreclosure consultant” defined.  “Foreclosure consultant” means a person who, directly or indirectly, makes any solicitation, representation or offer to a homeowner to perform for compensation, or who, for compensation, performs any covered service that the person represents will do any of the following:

      1.  Prevent or postpone a foreclosure sale;

      2.  Obtain any forbearance from any mortgagee or beneficiary of a deed of trust;

      3.  Assist the homeowner to exercise the right of reinstatement provided in the legal documents;

      4.  Obtain any extension of the period within which the homeowner may reinstate the homeowner’s obligation;

      5.  Obtain any waiver of an acceleration clause contained in any promissory note or contract secured by a mortgage on a residence in foreclosure or included in the mortgage or deed of trust;

      6.  Assist the homeowner in foreclosure or loan default to obtain a loan or advance of money;

      7.  Avoid or ameliorate the impairment of the homeowner’s credit resulting from the recording of a notice of default or the conduct of a foreclosure sale;

      8.  Save the homeowner’s residence from foreclosure; or

      9.  Assist the homeowner to obtain a foreclosure reconveyance.

      (Added to NRS by 2007, 2854)

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 Modification 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.NevadaCE.com

(702) 255-8722