Against the advice of some veteran agents in my office, I recently decided to take my first short sale listing in an attempt to learn the process and not be afraid of the words "short sale". Many agents warned me against this, saying that the transaction are too lengthy and confusing, and that I should just stick to "easy" listings as a new agent. Well, "easy" is just not how I do it, and I feel that in order to grow professionally, one needs to come outside their own comfort zone. Plus, with so many sales being "short sales" these days, I wanted to make sure that as a new agent, I get as much experience in as many areas that I can in order to grow my business. I took this listing at the prompting of another one of my colleagues, who said just as much. She encouraged me to learn so I can take future short sale listings with confidence, and follow through while expertly guiding my client. So far, so good... but this is not just by chance. It has taken a whole of lot work on my part to research short sales and what actually happens (hint: it is more than just allowing a bank to approve all offers), and to attend seminars, webinars, as well as several in house trainings.
One of the best recommendations I can give the new agents out there is to attain the services of an excellent short sale lawyer, and have him or her meet with your client right away in order to explain the process. It is very important that your clients understand the potential hit on their credit, and how long it might take to recover. Also, what affect will the short sale have on your client's taxes for the year? Will they have to claim the "shorted" money as income, even though they never actually see the cash? Will the bank come after the shorted money anyway, or will the loan be forgiven? What are the laws in my state? All of these questions and more need to be answered, and the answers passed on to the client. It is what they will expect, and what we as great agents should deliver.
And even before gaining the services of a great lawyer, work with someone in your office who has handled short sales, and read as much as possible about the process. Despite the negative comments from some of my colleagues, I was able to seek out the support of my mentor who has been outstanding at guiding me throughout. She has worked several short sales in the past, and has been very willing to be available to me for questions, etc. If you are able to, solicit this type of support when you can.
Overall, the transaction is running as smooth as one could expect. However, it is taking a team of professionals to make it happen. Above all else, make sure you enter into a short sale listing with the idea that all parties need to be patient, and need to be flexible. Getting the right buyer who is willing to wait it out is very important. To best protect your client's interests, you need to educate the parties involved, as well as be educated yourself. Best of luck!
Happy hunting
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