Did Your Sacramento Short Sale Agent Give You a MARS Disclosure?

By
Real Estate Agent with RE/MAX Gold DRE #00697006

MARS DisclosuresMy phone rang off the hook over the weekend but it wasn't sellers looking for a Sacramento short sale agent to list and sell their home. It was sellers who already had listed with me and who had received an email from DocuSign. My transaction coordinator sent out the MARS disclosures on Saturday. I knew these forms would be difficult to explain the minute I laid eyes on them.

The MARS forms are meant to protect the public from ripoff schemes and scam artists, especially those who charge fees in advance for negotiating a loan modification or a short sale -- many of which never materialize. It's a shame that when you find people in trouble, the sharks come out of the woodwork, but that's what has been going on in California and across the nation. People in danger of losing their homes find themselves directly in the path of a tornado. It's like their home has a blinking neon overhead that screams out: victim, come and get me. Crooks are everywhere. I don't blame people for being afraid.

Because real estate agents and brokers deal in the short sale market, the government has decided that MARS disclosures apply to us as well. So, even though we don't charge fees in advance and are paid commission by the banks at closing, the government says we have to give these disclosures to our sellers. They don't contain anything I haven't already told them because our listing agreements for short sales are woefully inadequate as well.

I tell sellers that they have the right to approve the short sale letter we'll get from the bank. Doesn't even matter if they're under contract with a buyer -- the entire transaction is subject to the seller's approval of the terms and conditions contained in the short sale approval letter. I tell them nobody will make them sell their home. They can cancel the purchase contract and the listing agreement at any time.

You would have thought that NAR could have made the forms a little more explicit. For example, the second disclosure says the commission paid is the same as the number in the first disclosure, but it's often not. Didn't NAR talk to any short sale agents before coming up with these forms? Sellers have a hard enough time understanding that they don't really pay the commission, but leave it to NAR to make it even more confusing.

Now I hear that the government thinks it might have made a mistake by forcing agents to send out the MARS disclosures. Within a few weeks, we'll find out if the government will exempt us from giving a disclosure to sellers that make us look like crooks when we're not.

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Weintraub and Wallace Realtors

 

 

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Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

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Topic:
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California Sacramento County Sacramento
Groups:
Posts to Localism
Short Sales Specialists
Lyon Realtors
Club Chaos
Legal Aspects of Short Sales, Foreclosures, Loan Mods
Tags:
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listing agreements
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loan modification
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short sale agents
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mars disclosures

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Ambassador
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Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

I like your martian art!

I spoke with CAR legal the other day because I wanted some clarification on something on one of the forms. They lawyer gave me an earful about how vague the forms are and how they may be changing again in the near future. But, they are what they are, and we definitely need to use them.

Mar 30, 2011 03:21 AM #1
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2,860,202
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Sadly I find they NEVER talk to agents and broker before changing the forms.  Not the NAR, not the GAR, nope, none of them.  Just a bunch of attorneys who don't do real estate.  After a few lawsuits they will "revise" the forms... keeps them working I suppose.

Mar 30, 2011 03:22 AM #2
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1,878,678
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Lots of scams out there Elizabeth even in fund raising for helping people in Japan with the earthquake. People need to know that MARS is more than just the red planet. Great post.

Mar 30, 2011 04:37 AM #3
Rainmaker
287,577
Barb Van Stensel
Chicago, IL

Either agents will follow or they will not.  I realized that this morning after a meeting and had to walk it off because it pretty much upset me re ignorance or lack of wanting to be informed.  These forms are confusing but we need to follow until such time they modify.  Re Tammy:  A bunch of attorneys who are protecting themselves through exemption.  Not a happy camper that more isn't required by attorneys re knowledge and experience and more importantly, disqualifying themselves.

Great post.

Mar 30, 2011 05:43 AM #4
Ambassador
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I'm going through all my Short Sale folders and getting the MARS disclosures out too.  And DocuSign makes it a piece of cake.

Mar 30, 2011 07:53 AM #5
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