The Federal Trade Commission (hereinafter “Commission”) on July 15, 2011, issued a press release that it will not enforce most of the provisions of the MARS (Mortgage Assistance Relief Services) Rule against real estate professionals who are engaged in obtaining short sales for consumers (full press release can be found below and at http://www.ftc.gov/opa/2011/07/mars.shtm). The stay applies only to real estate professionals who: 1) are licensed and in good standing under state licensing requirements; 2) comply with state laws governing the practices of real estate professionals; and 3) assist or attempt to assist consumers in obtaining short sales in the course of securing the sales of their homes. The stay exempts real estate professionals who meet these requirements from the obligation to make disclosures and from the ban or collecting advance fees.

Please be aware, that while the Commission is not going to enforce some provisions of the MARS Rule, state law is still in effect. A real estate professional may not induce a person who is at risk of foreclosure to hire the real estate professional because the professional has suggested that they have a special relationship with the person’s lender or loan servicer, or falsely representing or advertising that the real estate professional is acting on behalf of a government agency, the person’s lender or loan servicer, or a nonprofit or charitable institution. U.C.A. §61-2f-401(21). Foreclosure Rescue means for compensation or with the expectation of compensation to engage or offer to engage in an act that will assist a borrower in preventing a foreclosure of residential real estate. U.C.A. §61-2f-102(13).

In addition, beginning July 1, 2012, a Realtor may not request a person to pay a fee for a foreclosure rescue service before obtaining a written agreement between the person and the person’s lender or servicer. U.C.A. §61-2f-401(21)(d).

Should you have any questions about the services we provide or would like to begin working with the Short Sale Advocate, please contact us by Phone at 866-297-3883 or email at info@shortsaleadvocate.cc.