Navigating Short Sales in Oregon

I had the pleasure of attending a short sale training class this past week that focused on clarifying Oregon Law as it applies to handling short sales.  It is amazing to me how many agents aren’t aware of what they can and more importantly can’t do when it comes to the handling of short sales in Oregon.

To Protect and Serve

Because of the financial impact now and in the future, the State of Oregon has passed laws to regulate what is required of anyone receiving compensation on a short sale transaction.  You will want to read ORS Chapter 697 to get all of the details.  But I will highlight a few points that most real estate agents aren’t aware of.

Disclaimer: This is for informational purposes only and does not represent and is not intended to provide legal advice.  You should speak to an attorney for that.

You Need A Debt Management License If…

  • You are charging a short sale negotiation fee
  • You are receiving a portion of the real estate commission for negotiating
  • You have formed an “LLC” to offer short sale assistance
  • You are assisting or offering to assist in the preparation of financial documents…

That last one is a biggie.  I can’t tell you how many times I have had a seller try to submit a financial worksheet or short sale packet that isn’t filled out.  They don’t seem to understand that the bank needs to evaluate their finances for a short sale much like they did when they applied for the loan.  Only this time “stated” finances won’t suffice.

The State of Oregon’s view is that assisting in the preparation of financial documents are more than incidental to a real estate transaction and therefore triggers the need for a Debt Management Service Providers License.  In short, you cant help them apply for a short sale.  You’re dealing with a financial application that modifies the terms of a mortgage loan.  Because of that, the State wants to regulate people with that responsibility.

Let Us Deal With The Hassle

Northwest Debt Management is licensed and bonded as a Debt Management Service Provider in Oregon.  #DM-80083.  All we do is short sales.  If you’re an agent, why put yourself at risk?  If you’re a seller, why not hire a professional to deal with the complexities of a short sale?  If you would like assistance with your short sales, please contact us.

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