Stop Foreclosure-How to Work with Realtor for a Short Sale

I talked about the benefits of not using real estate agents to do short sale for you to stop home foreclosure in my previous blog. If you feel that you do need a real estate agent to help you, then you should select a right one. Here is how you should select your real estate agent to the do short sale for you.

1. Interview several real estate agents and see if they have any experience of short sale. Pick those who have done the short sale successfully before.

2. Then, ask if they are willing to accept smaller commission than normal situation they would get. Pick the one who has done short sales successfully before and also willing to accept smaller commission.

3. Ask them how they are going to market your home for a short sale. Remember, just listing with multiple listing services (MLS) is not good enough for a short sale. There should additional ways to market to investors. Right now, most short sale buyers are still real estate investors. A lot of home buyers have not realized that short sale is a better way to buy their homes. The more marketing ways, the better.

4. Indicate clearly the commission either in percentage of the sale price (usually 1% or less for listing agent and 1% for selling agent) or dollar amount for the listing agent and selling agent in your Brokerage Engagement Agreement (also called List Agreement). Most of the time, it requires agents to accept smaller commission in order to get the buyer and the lender agree to the sale price because nature of foreclosure proceedings and your difficult situation. Agents have to have a big heart and care about you enough to work for you for a smaller commission. If buyers and lenders could not agree to the price, then the properties have to be foreclosed. No one agent can get any commission.

5. Also require your list agent to market your home not only with the multiple listing services and also other free listing services or websites, such as www.craigslist.com and http://short-sale-listing.com. This will help you to serious short sale buyers. You should also put those requirements in your list agreement.

6. Authorize your agent to request short sale package or packages from your lender or lenders.

7. Complete all the forms, required documents, financial statement, and hardship letter as soon as you can.

8. Sign all the offers or Purchase and Sale Agreements that you received from your agent so they can be presented to your lenders for review and approval.

9. Make sure your agent have a net sheet accompanying to each offer.

10. Wait patiently for your lenders’ approval.

Short sale is very complicated process. It takes a lot of knowledge and expertise. It includes foreclosure laws, timelines, how to market to buyers, how to negotiate with senior lien holder and second lien holders. The discount for the junior liens should be much bigger than the first lien. It is an art to negotiate with lenders.

To know more about how to successfully conduct a short sale, subscribe my free eBook here.

For more help on stop foreclosure, go to http://foreclosure-help-centers.com

Post your questions for help on home foreclosure, go to http://forum.foreclosure-help-centers.com

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