Homeowners who find themselves in a difficult situation are likely to feel worried when they realize they might have to sell their home for less than what they owe on the mortgage . A homeowner may reach out to their original real estate agent to discuss the possibility of a short sale. This may not be the best option. Even if your experience was positive, you won’t get the same support as a short-sales Realtor. A short-sales agent can help you navigate the many complexities of your future.
If you are convinced that short selling is the best choice, you will need to find a short-sales real estate agent.
The short-sales Realtor is not like your average agent
The short sales process may look like your typical transaction at first glance. You will search for a real estate agent. The agent will list the home and then find a buyer . negotiate for the sale. This is where the similarities end.
The short sale agent negotiates with the lender who holds the mortgage on the property. It is important to establish how much the lender is willing and able to lose by short selling the property. The negotiation begins before the house is even listed. The lender must give permission for a short-sales agent to sell a house. To proceed with a short sale.
Lenders are keen to make as much money as possible. A seller who is able to sell the property without the lender’s approval may not be able to get it approved. The short sales Realtor has the opportunity to use their experience working with lenders in short sales. They know the best approach to use to convince the lender to sell the property short.
The short sale agent will ask for a short sales package explaining why you are seeking a short sale. It will also include a hardship letter as well as financial records from the last two years, if not more. You must trust your agent as you will share your financial records, including overdue or collection notices.
Problem with finding a short-sale Realtor(r) in today’s market? Short sales aren’t very common. In 2008’s Great Recession, 1 out 10 houses had changed owners. However, that could change soon as mortgage defaults are up 55% by mid-2022, compared to before the pandemic.”
Ask a Realtor who sells short-term homes questions
You’ll find many people who claim to be experts in short-selling real estate agents. But that doesn’t necessarily mean they are. Selling agents need to find an agent who is skilled in short-term sales. These are the questions to ask when interviewing agents for short-sale expertise.
How did you experience short sales?
It is important to verify that they have experience in short sales. Ask for their current short sale listings and the number of short sales that they have closed in the last 12 months. You might consider keeping them on standby if they are unable to provide proof or have not closed any deals in recent months.
Despite this, shouldn’t be based too heavily on the past experience as short sales aren’t commonplace in recent years. Short sales make up less that 1% in all sales as of May 2022. Make sure to ask agents who have not had any short sales in the past from 2008 to mid-2010s if they aren’t. Ask them if they are up-to-date on current short-sale regulations, both locally and federally.
Are you familiar with any short sales made by my lender?
(If yes, how many?)
It is helpful to have a short sale agent who has dealt with your lender before, but it doesn’t mean they are a problem. It is helpful if they have experience with your lender’s short-sale processors. This can make your transaction run smoothly.
Ask the agent about their experiences working with multiple loan or lien holders if your property is owned by more than one. Ask the agent about their experience with dealing with short sales with multiple mortgages or lenders.
Ask for testimonials from past clients who have made short-term sales with the agent.
Are you certified, licensed, or trained in short-sales?
Although an agent might have some experience with short sales, it is always beneficial and comforting to know that they have been trained for complex transactions such as short sales. An agent may have passed the Short Sale and Foreclosures Resource Certificate from the National Association of Realtors (r), or may have been Certified Distressed Properties Expert.
Building your short sale dream team
If you are selling your house traditionally, the agent you hire will be the only one representing you. You’ll need to have a few more people around you if you are going through a short sale. So along with your short sale Realtor(r), you might want to hire a short sale attorney and short sale negotiator. They must have a license in real estate, a license to originate mortgage loans, or a registration for a debt management company.
A short sale lawyer can be a great asset to your real estate agent. They will help you navigate the complex legalities and regulations surrounding short sales. A negotiator can help you make the short sale as profitable as possible.
After you have found a short-selling Realtor you feel comfortable working with, they will be able recommend whether you should add an attorney or negotiator. All depends on your specific circumstances. An agent who has extensive short-sales experience may have an in-house team.
A licensed Realtor who specializes in short sales will help you get out of this difficult situation as quickly as possible. They can also advise you on how to avoid scams and other offers that are not appropriate for you. They can also help you prepare for obtaining another mortgage after a short sale.
A short sale is a difficult financial situation that can make you feel demoralized and drained. However, a short sales Realtor(r), can help you to navigate it as painlessly as possible.