How much do you charge for your professional short sale negotiation?
We only get paid if we successfully negotiate the short sale on your client’s behalf. We charge half the selling side commission. We usually negotiate a larger selling side commission so we are all making more money.
How do I know if a homeowner should do a short sale?
Can you sell the property for what the homeowner owes after real estate commissions and closing costs? If the answer is no, then the homeowner is in a position to do a short sale. Many times the homeowner will refuse to drop the list price of the home below a certain point. This may be due to them trying to break even on the property. Approach the homeowner and mention that short sales have been on the rise lately in their neighborhood. Tell them what a short sale is and what the advantages are as compared to foreclosure. Discuss with the homeowner to find out how they’re doing on making their mortgage payments. If they are having a difficult time and have negative equity in their house, then it is very likely they need to do a short sale.
How can I increase my business by offering short sale service?
Are you only selling properties that have equity in them? Yes? Then you are turning away business and limiting yourself. Many real estate agents believe they have to learn how to deal with negative equity homes, and then specialize in them. Not so! You can open yourself up to this huge market by outsourcing the short sale process to myREALpro.com, and continue to focus on your core-competency, helping people buy and sell houses.
How do I market to homeowners who need a short sale?
When you advertise for your services, simply include that you handle short sales. You may want to add what qualifies homeowners for a short sale. They are:
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Owing more money on their property than what they could sell it for, especially after real estate commission and closing costs
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Not having enough money in the bank to cover the difference of what they could sell their house for and what they owe the bank
What are the benefits of outsourcing my short sales to myREALpro.com?
If you have conducted short sales in the past, you know what a time consuming process it can be. Many agents find they would rather utilize their time by concentrating on listing more properties, so they ask us to handle the collection of financial paperwork from the homeowner and the short sale negotiation with the mortgage servicer.
How successful and experienced is myREALpro.com at conducting short sales?
myREALpro.com’s professional short sale negotiators received top notch training from a former Loss Mitigation officer at a major lender. We have successfully closed countless transactions and have helped Agents make more money while saving their client’s thousands of dollars and saving their credit. We have developed a comprehensive system and process that gets it right the first time. We have also established valuable contacts with lenders and mortgage servicers.
When should a homeowner start their short sale?
It is best to begin a short sale when the homeowner realizes they can no longer afford the mortgage, so that the property can be marketed properly and we can receive a high offer. We also work with homeowners who are already in foreclosure and/or in their redemption period. Call us to discuss your situation.
How long does it take for you to complete the case once the homeowner fills out the paperwork?
Typical cases are completed within three months. If there is a foreclosure sale date approaching, please give us a call. In the past we used our relationships with the banks to push back and postpone the foreclosure the sale date.
Does you buy the property?
No, we never take ownership of properties. This reduces the homeowner’s liability. There are people/companies who say they will conduct the short sale and buy the property. Watch out! This places a lot of potential liability on the homeowner. Our business model is to sell the property for us much as possible, which reduces the liability on the homeowner and increases your commission. Other “people/companies” will buy the property at a very low price so they can turn around and sell it for much more- what it is really worth! The banks do not like this and often refuse the short sale and/or ask the homeowner to pay back the difference.
How does a foreclosure and a short sale show up on the homeowner’s credit?
A credit bureau is the only true source of information for determining how a short sale and a foreclosure is going to affect a homeowner’s credit. From our experience with homeowners, which is not to be taken as any form of legal advice, foreclosures usually show up as FORECLOSURE and can stay on a credit report for seven years. If a homeowner applies for a new loan or has their credit run, the foreclosure could show up. It is also a common disclosure many employers require on most job applications. A short sale is commonly listed as SETTLED DEBT, and can be much less harmful to credit. Please consult a credit bureau for how a short sale and a foreclosure will actually affect a homeowner’s credit.
What liability does the homeowner have when doing a short sale?
For advice on your liability when doing a short sale it’s best to consult an attorney. Recent changes in law, such as the Mortgage Debt Relief Act of 2007, have reduced homeowners’ tax liability. In a short sale of a primary residence, the Mortgage Debt Relief Act did away with much of the tax consequences. For residences other than a primary, in both a short sale and a foreclosure the homeowner could be taxed for the difference in what is owed and what the bank receives as payment. This means the IRS could consider the difference as income, and the homeowner could be taxed on that income. In a short sale we seek a full release of lien and request that the debt be considered settled. A short sale is a negotiation, so the bank has the right to ask for an unsecured note (not backed by any assets) or ask for a cash contribution at time of closing the short sale. Every short sale is different, as is every servicer and every situation. myREALpro.com employs tactics and strategies to negotiate the best outcome for your client. In a foreclosure, the house is sold at an auction, which typically causes the difference of the total amount owed and the foreclosure sale price to be much greater than in a short sale. This means the homeowner could have a higher potential tax liability. Additionally, the bank could sue for a Deficiency Judgment.
A successful short sale will eliminate a deficiency judgment, minimize tax liability, and keep the foreclosure off a homeowner’s record.
What advantages are there in using myREALpro.com’s professional short sale negotiators instead of other firms?
You should go with the professional negotiator that is most effective at completing short sales. We work with people that have worked in the banks’ short sale departments. They know the “ins and the outs” of the banks and the right questions to ask. We focus only on the SW region, California, Arizona, and Nevada and have strong relationships with banks in this region. We provide personal service that always keeps you in the communication loop.
Does the homeowner need to give you power of attorney to conduct the short sale?
No, homeowner’s should never give power of attorney to short sell their property. |