The Colorado Division of Real Estate issued a position statement with respect to the role of Realtors in a short sale. The important element is that in a short sale the real estate broker is working with the seller to help that seller exit the home, not modify the loan so that the seller can stay in the home. Also, in a successful short sale, the original loan is usually extinguished and there is not a modification to the mortgage.

Realtors are reminded that the real estate broker short sale exclusion from mortgage brokerage licensing does not appy if a homeowner engages a real estate broker to seek a loan modification, as opposed to a sale of the home. Also, a Realtor not licensed as a mortgage broker should never seek or receive compensation from an owner for obtaining a loan modification. In a short sale the Realtor's compensation should be the real estate commission earned and paid at closing.