Used to be that REO’s were everywhere and the Short Sale was a wish and a prayer for sellers who met the falling market at the worst possible time and hoped to be able to get their bank to allow a short sale so they could move on to a new life. Now banks have a new tune and more and more are encouraging the short sale so that buyers can avoid foreclosure and save the seller from the inevitable and both parties are better for working together. While it turns out short sales are more common MARS has come into play and in theory consumers will be protected from scammers out to take advantage of home owners that must sell their homes for less than they are worth.
Mortgage Assistance Relief Services or MARS are now regulated by the FTC and under new regulations anyone offering services to help homeowners must make certain disclosures to anyone using their services. Topping the list of disclosures that must be made for REALTORS® are facts pertaining to payments for services and termination of service without penalty.
What many homeowners may not realize is that many REALTORS® (myself included) also work in Loss Mitigation or Home Retention. As such I now require all clients sign new disclosures relating to short sales but will now advise all customers and clients that MARS is not only a planet but also a new layer of consumer protection to help them as they struggle making mortgage payments and search for options. Hopefully the new rules will work as they are intended and will not prevent homeowners from seeking trusted advisors to assist them with the short sale proccess without adding unnecessary costs to the consumer. Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. Serving the Pee Dee and Grand Strand of South Carolina.
