No problem. Feel free to contact me if you ever need help. I can walk you through one.

The seller, regardless of license, should not receive funds from the sale of the property. So I understand the banks not wanting to pay the seller, who is also an agent, as their view is that the seller should work for free and that will be their contribution to the loss on a short sale.

Sally & David - Thanks for the comments. It is not lender specific. Anyone can do the short sale, even the owner who is an agent. However, to financially benefit from conducting the short sale, the person has to be in Arm's length with the seller. So you could short sale your own home, but you cannot be compensated for it.

Darin - Again, not attacking anyone as the person is not important, but what they say. One person actually deleted their blog when I brought it up to their attention. When I researched this to see why are people getting such bad information, I saw that one agent's website stated "Can I short sale my own home to a family member?" and the answer was NO, as the transaction should be Arm's length (which is correct). However, about 20 websites plagerized this website but removed the "to a family member". So you have bad info floating around on the web and on AR.

Regarding being wrong about the definition of Arm's length, I didn't define it. However, re-visiting my blog, I can see what I said could be seen as confusing. I am trying to state that Arm's length does not play a part in conducting a short sale, just from financially benefiting from it. Hopefully I cleared it up in Sally and David's response. I also have a blog which defines Arm's length and my personal thoughts on it as it pertains to short sales. You are more than welcome to comment on that.

Regarding blogging...I blog for a lot of reasons. In this particular case, it is to offset the bad info on the web and on AR, especially from another guy in my area. If that makes me look smarter than the others who claim to be short sale experts, well that is just an added bonus! I also ask that you refrain from taking anything personal or making this a personal matter, as I do not, and focus your response on the subject matter at hand. It's ok to come on my blog and disagree with what I say, it's another to be my mother. After all, you wouldn't want me to comment on your blogs in that fashion.

"This was the most well thought out and put together response that you have ever had!"

Actually, all my responses are well thought out. ;)

"I just truly am not sure what qualifies a person as a "short sale" expert...are there or are there not certain requirements to become certified or training to get certified at it??"

To be honest, the game changes so much. It's like doing loans (I used to do loans as well). Guidelines change almost on a weekly basis. To be an expert, you have to keep up with the changes and learn how to combat them to your favor. I don't think any certification course can make you an expert just like no certification course can make you an expert loan officer.

"I have noticed since our first "skirmish" that you have noticeably altered your attitude conveyed in your blogs."

First off, I never had any "skirmish" with you or anyone else here. Your issues with me, if any, were your issues, not mine. I always try to represent the facts of a short sale and the tricks to make them work. As far as altering my attitude, I think I am still an ass. ;)

"I respect what you are saying about the "personal" issue, so please practice what you preach or ask for!  That's all!- "

None of my blogs or responses are personal. For example, you can right write blogs which I agree with and then you can write blogs that I don't agree with or have a different perspective. I will answer regardless. It will never be personal.

Also, keeping a cool head and not getting emotional, is key to be a great negotiator. If I took anything personal, I would have given up on short sales long time ago! If I could only remove the emotional element out of my marriage, I could negotiate better with my wife!

"I want to learn more about SHORT SALES, but yet, I am a lender..I really only care about them as to how they pertain to getting financing.  If you have a lender partner, you should do a blog together on what BOTH SIDES can do to make them more efficient!"

The only thing I can think of off the top of my head is to find someone who can fund loans where they don't care about extra expenses on the buyer side of the HUD, such as payouts to the 2nd lender. I also work with lenders that can close FHA in 3 weeks or faster and conventional within 7 days. Find out what is our pain in short sales and see what you can do to help us. So far, fast close and HUD flexibility is two that I can think of. Oh, to prescreen the buyers of our short sales so we know they will qualify for a loan when we finally get that approval.

"we have proof and where agents were denied doing a short sale"

Why were they denied a short sale?

"the bank doesn't even want to sniff that an agent can benefit"

That is true. An agent, who is doing a short sale on their own property, cannot benefit from a short sale. All that means is that the agent cannot collect commissions from the deal. They, however, can do a short sale on their own property.

Look at this blog. No one states that an agent can't do their own short sale. They just state that the agent can't get any commissions from the deal. Look at comment #53:

http://activerain.com/blogsview/586018/should-agents-represent-themselves-in-the-short-sale-of-their-own-home-

You show me proof where an agent cannot do their own short sale. Why don't you ask people who do short sales for their input.

For the record, look at this website:

http://www.forsaleinsouthflorida.com/Short_Sales_Explained/page_2142131.html

Look at the question "Can I short sale my own house to myself or a family member?"

Now, if you Google "Can I short sale my own house", you'll see all these people plagerize this website and provide false information.

"Satar-  I thought I was extremely complimentary and very nice to you.   I went out of my way to THANK YOU, and to commend you.  THEN, i get this retort or response?"

You found my response offensive?

"It is clear to me that I will never ever comment on your blog again, nor give you the time of day! You simply are not worth it."

That's your choice.

"You have chosen to use words in your responses like, 'disguising your fees'"

Maybe you should create a blog and let me know about it and I will explain/debate it with you.

"and think of yourself as an expert but dont feel the need to have any accredidation"

There is no accredidation for short sales. I can't call BofA and say "Please approve my short sale as I am a member of XYZ certification." It's an on going skill that even the best training can't make yourself an expert. It's like doing loans. I read your blogs and I can tell you know your stuff. I bet there is no class or accredidation that make the average Joe an loan officer of your knowledge and experience. Sure, they might learn how to fill out an application and what they need to do in a transaction, but the guidelines are ever changing and only someone who is doing loans is up to speed.

"Lender/FUNDERS not caring about extra expenses being on a HUD for a BUYER??   2nd lien/mortgage?  Of COURSE they will! You are just merely trying to find a way around an illegal activity!"

That's your opinion. There are lenders out there who don't care if the buyer side of the HUD show payments going to the second lien holder or to real estate commissions. Some are client specific. You asked what you can learn that will apply to short sales and I gave you two examples. So if your funder or underwriter will not allow this and if you want to help short sale real estate agents, then you should look into a different funder to broker loans for your short sale buyers and then advertise your services to the short sale agents.

"Self made and proclaimed expert!"

Self made and result proven. Plus you don't see me putting bad info on short sales out to the public.

More evidence:

http://www.ezinearticles.com/?Is-it-a-Good-Idea-to-Do-Your-Own-Short-Sale?&id=1827305

"I was told over and over by investors that I could not negotiate my own short sale because banks would not help their own customers... I learned a lot from that transaction, and have since done several of them because I owned several houses and they were all "upside down" due to the declining value of real estate in general. So do not let anyone tell you it can't be done, because it can!"

http://activerain.com/blogsview/1107801/should-realtors-sell-their-own-short-sale-home-

http://www.e-titleagency.com/realtor-faq.php

"I’m a real estate agent and am at risk of losing my home through a foreclosure. Can I list my own home as a short sale?

In a short sale, the seller is not allowed to benefit financially from the transaction. Therefore, there is no advantage to listing your own house. It is our recommendation that you have another agent handle the listing and sale of your property."

http://www.move-up.com/foreclosure_saver/short_sale_faq_s/

"Q. Why should a use a Realtor? Can’t I negotiate the short sale on my own?

A. Just as you would hire an experienced attorney to represent you in a legal matters, an experienced Realtor is vital in negotiating your short sale. Without your attorney, you are less likely to win your court case. When you are in contact with the bank, they usually have one goal in mind- collecting the money they are owed. This can make the homeowner feel very bullied and it can discourage you from completing the task. When the bank deals with the agent, they see that the agent is offering an alternative to foreclosure. An experienced agent knows how to communicate with the bank, and therefore can be more successful."

http://www.stepbystepshortsale.com/

http://www.danfabbri.com/short-sale-info.asp

"Q. On my own, can I prepare a short sale package/kit, and if so, how would I go about doing it?

A. The short answer is yes, you can prepare your own short sale proposal and submit it to your lender. Some lenders may even assist you in the process. Just like preparing your own taxes, however, you might need help in this critical process. Real estate agents experienced in short sales understand that the bank will want to find out what efforts have been made or could be made to market the property for the highest price and best use of the property. In addition, most lenders will require Broker Price Opinions and or Competitive/Comparative Market Analysis to determine benchmark pricing."

Thanks Gabriel for your input. I will update the blog to correct the Arm's length as I didn't present myself clearly.

Thanks Joseph for taking the time to comment.

There are two issues here:

1. You doing the short sale for another agent: You and the agent must be in Arm's length. That means you can have no relationship with one another. You and the seller cannot split your commissions. In fact, if you and the agent work for the same broker, the bank might cut the commissions (this is true with the buyer's broker is the listing agent's broker as well). It seems like you two are OK regarding this issue.

2. Buyer and Seller: The relative cannot buy the house as there needs to be an Arm's length transaction between buyer and seller. It doesn't mater if they are willing to pay more. If the relative and seller share the last name, are on tax returns or bank statements, the lender will kill the deal.

Let me know if you have any more questions.

Thanks for the comment. It's OK, as long as I can counter the bad info going out on the web and Activerain, I'm content.

If you need any agent to handle the ground work and MLS listings of any of your Orange, Riverside and Los Angeles county short sales while you handle the negotiations, it would be my pleasure to help out. We can work something out if and when the deal closes.

Will do. You guys have that different lock box then we do in Orange and Riverside County. San Diego always has to be different! ;)

Tension? C'mon we have short sales more intense than this! This is child's play at best! ;)

I agree with your statements 100%! Thank you for taking the time to comment. I appreciate the input from an experienced person as yourself. I hope to see you around Activerain.

Thanks Jason for commenting.

"Taking money in a commission has been ruled as benefiting from their own short sale, however if the lender knows your working the short sale and doesn't complain about it there is no issue."

Have you ever run into a lender that allows it?

Also, just to be clear, I am not advocating that an agent receive any commission on their own short sale. Just that an agent can do their own short sale.

Geoff - That is true. Thank you for taking the time to comment.

Hi Danielle - Thanks for commenting. You'll be able to do a short sale on your own. However, on the HUD that you send to the bank, it cannot show any commissions going to you as the real estate agent. Also, if the buyer's agent is from the same brokerage as yours, the commission might be denied as well. What some people do in your shoes (in California) is to have another agent from a different broker be the listing broker for the short sale and then have them 1099 you a portion of the commission afterwards.

Please remember this blog when you are done to help fight the bad information out on the web! Happy New Year to you too! Also, feel free to contact me if you need help or advice.

Mark- You are absolutely correct. However, it is my experience that the lender will knock out the commission if they see that you are collecting it on the HUD. I even had one lender knock out my commission (I was the listing agent and my seller/client was an agent) because they felt that the seller should have listed the home to reduce the loss. I got my commission back on that one.

Like I stated before, it is better to find ways in which are legal and profitable.

Also, thank you for the link and reaffirmation.