Debt, including short sale, negotiators in Connecticut must be licensed, unless the person doing the negotiations is an attorney or a real estate agent. These people are covered the license we already have. A licensed debt negotiator in Connecticut is only allowed to collect a maximum $500 fee for negotiations on a secured debt at closing, from either the mortgagor or debtor, and only upon the successful completion of the debt negotiation.
A warning has been issued to all real estate licensees by The Connecticut Department of Consumer Protection and the Connecticut Department of Banking that they are investigating complaints that short sale negotiators are entering into agreements with the consumer and the real estate agents who represent the owner of the property to receive portions of the real estate commission meant for the real estate broker. This is against the law!
Real estate brokers and agents are not allowed to, by law, share our commissions with anyone that does not hold a real estate license. This puts every one at risk. You can read more here from the Connecticut Department of Banking.
If indeed you are approached by either your debt negotiator or your real estate agent that this is common practice, please remember that all parties concerned can get into serious trouble. Home owners who are underwater, who cannot pay their mortgage, who owe more than their house is worth and are now finding themselves unable to pay their mortgage should consult with a qualified short sale real estate agent and or attorney. If your real estate agent brings a short sale negotiator on board, make sure they are licensed, and that they are not asking you to help them break the law.
If you would like more information on short sales in the Greater New Milford, CT area, please call me at 203.460.1775, or send me an email at the contact below for a confidential interview.
IMPORTANT NOTICE REGARDING SHORT SALES: Andrea Swiedler and/or Prudential Connecticut Realty are not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.