Benefits of working with a short sale agent
Short sale agents across the country are a special cause of specialized real estate professionals who can help people to short sale their homes with the least amount of argument possible. This is because they understand the process of banks expecting to close short sales quickly and successfully. Not every transaction is the same, and this could not be truer in the short sale world. Many properties have a first and second mortgage, HOA liens, mechanics liens, and unpaid taxes among other issues. To get these properties to a successful closing with clean title often requires the help of a dedicated short sale agent.
Many homebuyers trying to do a short sale first of all find a short sale agent they can trust. Trust is the main factor for going through the process of short sale. If someone looking for short sale he may ask friends, family members and coworkers referring any reliable short sale agent. If someone is doing the first time short sale or short sale buyer he needs to be very careful while hiring a short sale agent. If someone is not familiar with the short sale process and also hire an inexperienced short sale agent, then he will be inviting the problem to knock his door by self.
When hiring a short sale agent homeowners should take the following elements into considerations.
- Is the agent experienced?
- Is the agent a neighborhood specialist?
- Does the agent possesses specialized knowledge or has received training for specific types of transactions?
- How many short sale he/she has closed?
- What are referrals saying about the agent?
Role of Buyer’s Agent:-
Mostly there is no huge involvement of buyer’s short sale agent in the transaction. The success or failure of short sale negotiation falls on the shoulder of the short sale listing agent. The buyer’s agent cannot speak to the seller nor can contact the short sale bank.
The buyer’s agent performs the active role at the establishment of offer, by crafting that offer to protect buyer’s interest. That’s because there are elements inherent in a short sale offers that are not present in a regular transaction. Agents who list and sell a lot of short sales can identify these elements for a buyer.
Duties of Short Sale Buyer’s Agent:-
Normally, at the time of making an offer on a short sale, buyers want some sort of assurance that the short sale will be closed. The buyers want to make sure that their offer will not be rejected by the bank and the home will not be sold to someone else in the market. A buyer may want to hire an agent with short sale experience because a short sale listing agent has first-hand knowledge of the short sale process.
Here are some of the things an experienced short sale agent does:
- Verify the number of that listing agent’s sold short sales to determine the agent’s experience level. If the listing agent hasn’t successfully closed many short sales, that could be a red flag.
- Find out whether there are two loans on the short sale and the identity of the lenders. This information will serve to approximate the wait for short sale approval.
- Talk to the listing agent and ask whether the agent is negotiating the short sale or if it will be farmed out to a third-party vendor, which could cause delays.
- Ask whether the seller has a hardship. Without a hardship, it’s possible the short sale could be denied.
- Run the comparable sales analysis for the home because the list price could mean nothing.
- Eliminate the competition and the chances that the seller will send multiple offers to the bank.
A short consultant or short sale consultant firm is the short seller’s leader and will be taking care of all the worries and tensions attached to the process of short sale. Here are the typical duties and responsibilities of a short sale agent:
- Packages the documents required by the seller’s bank and send those documents to the bank.
- Requests updated bank statements and payroll receipts from the sellers and sends those documents to the bank.
- Negotiates offer price and second-lien payoffs with the first lender.
- Negotiates demands of second lender, if any.
- Checks in with the lender weekly to inquire about status and whether other documents are needed.
- Delivers updates to the buyer’s agent as they happen.
- Orders the preliminary title report.
- Complies with demands from the short sale bank that may appear ridiculous but nonetheless are required.
- Advises the seller to seek legal and tax advice when the short sale agent recognizes such advice is warranted.
- Obtains a release of liability for the seller, if such a release is possible.
- Delivers the short sale approval letter to all parties involved in the short sale.
- Coordinates access to the home for the buyer’s home inspection.
- Reviews closing documents and / or attends the closing.