How to Use a Realtor in a Short Sale
Many people find themselves in financial trouble and can no longer afford to pay their mortgage. One solution is the short sale, which is selling the house for less than what you owe on it if the mortgage lender agrees to let you do this. Sometimes the lender will agree to a short sale in order to avoid having an expensive foreclosure on its hands. Using a real estate agent in a short sale will often gain you the most favorable terms for selling your own house or for investors who want to purchase a short sale home.
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Instructions
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For Sellers
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Hire a real estate agent who has experience in short sales. Short sales are different kinds of transactions than regular real estate home sales. Lenders, according to the National Association of Realtors, approve only about two out of five short sales. Therefore, you want to hire an agent who has experience working with short sales.
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Ask the real estate agent how many buyers she has represented in short sales and how many she has successfully closed, before hiring her.
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3
Negotiate with the bank with the help of the real estate agent. According to the National Association of Realtors, it is like the "wild west" trying to negotiate short sales. Lenders try to use hard sell tactics, such as insisting the buyer uses certain lenders. Trained real estate agents have better success in dealing with hard sell lending tactics. A professional who is trained in short sales knows who to talk to, already has relationships with banks and can make the difference in success or failure, according to the National Association of Realtors.
For Investors
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4
Use a real estate agent for his resources. If you are an investor looking to buy a short sale property, a real estate agent can find properties that are not actively advertised, according to ShortSaleResultsNow.com.
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Get a title officer through your real estate agent. That way, you can search to see if there are any liens on the property, such as second or third mortgages, home equity lines of credit, mechanic's lien, real estate tax lien or homeowner's association lien. Any of these lien holders can cause problems for the short sale to go through.
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Obtain objective information about the property. Your real estate agent can help you decide if you are making a good investment by letting you know the local community information, such as the schools and the existing mortgages. This information helps investors know if the property will have good resale value.
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Tips & Warnings
You will not have to pay the real estate agent any commission. The lender that approves the short sale pays the agent, not you, according to the National Association of Realtors.
