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I just got off the phone with another agent who completed a short sale last year.  Evidently, she thought once she sold her home in a short sale approved by the bank, then should would be done with that phase of her life and could focus on other things to improve her financial position.  Unfortunately, the lender is pursuing collection on the balance of her loan, close to $35,000.  That must be a confusing letter to receive after thinking that chapter was closed!

How an Expert Real Estate Short Sale Agent Can Save Your Money!

Unfortunately, her Realtor did not have short sale experience and this seller was negotiating her own sale with the bank.  She didn’t know that a real estate agent with specialized short sale training could have negotiated the terms of the short sale deficiency as part of the closing terms.  Traditional real estate agents know how to market homes.  Real estate agents with short sale experience know how to market homes with aggressive pricing strategies that the banks prefer to see while also meeting time-lines according the clients’ need AND negotiating with the bank.  If a home owner is faced with foreclosure in three months, an offer needs to be in hand as soon as possible to give the bank something to consider.  This is a tricky balance since the bank wants to see an effort to market at full price but the pricing needs to adjust quickly to market rates to receive an offer.

Once an offer is received, a knowledgeable real estate agent, or their transaction and negotiation management team will actively pursue the best terms for their client as part of the short sale approval.  This includes a waiver or significant reduction of the deficiency amount and not having an IRS 1099 issued which could create a tax liability for the deficiency amount.

Many sellers in distress don’t know about these options, nor do traditional REALTORS and real estate agents.  They’re not a secret by any means but a short sale isn’t a normal transaction taught to mainstream real estate agents.  Once the short sale is agreed to and the home is sold, there is much less room to negotiate the deficiency and it won’t be long before the calls start back with collection agencies looking to recover to balance owed.  Yes, we could have saved her thousands of dollars as part of the negotiation!

Check back soon for a future post on why commission shopping for a real estate agent isn’t the best approach to take for your short sale and how you can get the bank to pay your real estate agent fees .

For more information on short sales or if you’re a suitable candidate for one, contact us today.

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