What is a short sale negotiator?
A short sale negotiator works on behalf of a seller to reach a short sale approval with a bank or other lender. The individual’s job is to persuade the lender to agree to accept less than the debt owed on the mortgage in order to allow the short sale to occur.
What is the buyer responsible for in a short sale?
Causes. A buyer must cover short sale repairs if the terms of the contract or short sale approval state that the seller and lender do not pay for repairs, other than those required by law, such as smoke detectors, carbon monoxide detectors and water heaters. A buyer or his lender determine if repairs must be made.
Who pays the agent in a short sale?
In rare markets, a buyer may also pay agent commissions. In a short sale, the commission technically remains the responsibility of the seller, but the lender covers it with part of the sale proceeds.
Are short sales bad for the buyer?
Short sales are a mixed bag for the buyer, the seller and the lender. However, a short sale can forestall foreclosure and its negative impact on your credit. A short sale is less damaging than a foreclosure as long as the homeowner can persuade the lender to report the debt to credit bureaus as “paid in full.”
Who pays for short sale negotiation fee?
Short Sale Negotiators are usually paid at closing by the buyer of the property, the bank / lender, or the real estate agents involved. Ethical Short Sale Negotiators don’t charge the home owner to represent them, nor do they charge thousands of dollars in up front fees.
Do agents get commission on short sale?
A short sale enables homeowners to stay in the home until the sale is completed. A foreclosure forces homeowners to vacate. While a seller typically pays all real estate agent commissions and other closing costs, in a short sale the seller pays nothing; the lender or bank foots the bill.
How long do short sales take?
Once an offer is received and signed, I send it to the bank, along with the seller’s short sale package and a prepared HUD. From that point to the time of short sale approval, the average timeline is about 60 to 90 days. It means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.
What does a short sale negotiator do?
A Short Sale Negotiator represents the seller, not the bank. Their job is to get the Short Sale approved by the bank. Short Sales have become more complex in 2013 and they are harder to get approved by the lender.
How much does a seller make on a short sale?
Sellers generally don’t care about the price –Whether you offer $400,000 or $1, the seller makes $0 on the successful completion of a short sale. Their only motivation is to get the process over with and avoid foreclosure. The seller’s real estate agent is highly motivated to close – Short sales can be a lot of work for agents.
What do you call someone who does a short sale?
These con artists, calling themselves short sale negotiators (or short sale processors, short sale coordinators, short sale expeditors, debt negotiators, debt resolution experts, loss mitigation practitioners, or foreclosure rescue negotiators) guarantee results for a flat fee or a percentage of the sale price.
Is it illegal to collect fees on a short sale?
In California, it is illegal for short sale negotiators to collect fees in advance of providing services, unless certain stringent requirements are met. You should also check if this is the case in your own state. Before hiring a short sale negotiator, do your due diligence.