Barlay Law Group

Short Sales - An Agent's Perspective

IMG 3549eThere have been several recent federal laws (including the SAFE Act) that have recently been passed that allow real estate agents to participate in the short sale process.  However, these federal laws mostly give preference to laws passed by individual states.

In Georgia, the Georgia Residential Mortgage Act, O.C.G.A § 7-1-1000 et seq. ("GRMA") prohibits any person from transacting business as a residential mortgage loan originator, mortgage broker or mortgage lender unless licensed or exempted from licensing.  The Georgia Department of Revenue has taken the position that in short sale transactions the short sale lender is agreeing to modify the terms of their loan by receiving less than what is owed.  Therefore, a short sale is a modification of the loan terms and anyone that assist the homeowner in obtaining an approval must be a mortgage professional.  The Department of Revenue has been attempting to education real estate professionals and has issued several cease and desist letters to the most aggregious of offenders.  One exception to this licensing requirement is "an attorney licensed to practice law in Georgia who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client." (O.C.G.A. § 7-1-1001(a)(5))

Barlay Law Group LLC has developed the ShortPASSTM (Short Sale Processing Assistance) Program to assist agents in dealing with short sales.  This program allows real estate agents to continue to do what they do best: represent clients in the purchase and sale of real property. 

In addition to calls and emails with updates on your files, we also provide 24/7 online access on up-to-date information on your files.  You can access this section by clicking on the "Agent Area" section at the top of this page, and selecting "Agent Login."  Please note that you will need a userid and password to access this area.  If you do not already have these items, please call or email us for that information.

Attachments:
FileDescriptionFile size
Download this file (ShortPASS - Intake Worksheet.pdf)ShortPASS - (1) - Intake WorksheetForm used to initiate a short sale file81 kB
Download this file (Bank of America Verbiage.doc)ShortPASS - (2) - BoA VerbiageLanguage for BoA Listing Agreements and Contracts24 kB

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