Broker Hellickson won't get license reinstated before hearing

Nationally prominent short-sale specialist Michael Hellickson has lost a bid to get his real-estate license reinstated while he appeals state findings that he took advantage of struggling homeowners.

The state Department of Licensing earlier this month suspended the licenses of Hellickson, his wife Tara Hellickson, and their Pierce County firm, Hellickson.com, after concluding they had engaged in a host of dishonest practices.

The Hellicksons appealed, and asked that their licenses be reinstated until the appeal is decided.

But administrative law judge Terry Schuh on Tuesday denied their request, saying that to grant it he would have to conclude they were likely to win their appeal.

"Given the breadth of the [licensing] department's allegations, I am not persuaded that it is 'probable' that the department will be unable to establish at least some of its allegations... " Schuh wrote.

"This of course does not mean that [the Hellicksons] will not prevail," he added.

The Hellicksons' lawyer was not immediately available for comment.

The Hellicksons represented hundreds of troubled homeowners across the state, and Michael Hellickson touted himself as an expert on short sales — sales for less than sellers owe on their homes. He has appeared on CNBC, Fox Business News and other broadcast outlets.

Hellickson also heads Club Wealth Coaching, which holds training events for agents around the country. A biography of Hellickson on Club Wealth's website says he is "Washington State's (and the entire Northwest's) #1 real estate agent" and "is considered by most to be the #1 short sale expert in the world."

The Department of Licensing, prompted by numerous complaints, began investigating the Hellicksons in early 2009. It suspended their licenses three weeks ago, saying their misconduct was "an immediate danger to the public health, safety and welfare."

Among other charges, the agency says the Hellicksons:

• Promised to buy clients' homes if they didn't sell within 30 to 90 days, then didn't follow through.

• Encouraged homeowners to stop making mortgage payments.

• Listed homes for less than the owners or the owners' lenders were willing to accept.

• Misrepresented the contents of listing agreements, including expiration dates.

• Had clients sign blank pages in listing agreements, which the Hellicksons later filled in without further authorization.

• Added language without clients' knowledge to proposed sale agreements, steering prospective buyers to specific lenders.

The Hellicksons, through their lawyers, have denied all the charges. Their appeal is scheduled for a hearing Oct. 19.

The Hellicksons contend the licensing department is retaliating against them for resisting on constitutional grounds the agency's bid last year to obtain records of disciplinary actions taken against them by the broker-owned Northwest Multiple Listing Service.

The service has ruled against the Hellicksons on at least four occasions, according to the licensing department, and fined them a total of $20,000.

Eric Pryne: 206-464-2231 or epryne@seattletimes.com