I had a new phone consultation yesterday, and the client said " Patrick, you've given me more information in these last 10 minutes than the other 2 short sale "experts" did in an hour! They just wanted me to sign a listing agreement when they couldn't answer any of my questions!"
Short sales are not simple transactions, and you really need someone on your side that knows what they are doing. Here's what to look for when choosing your short sale agent.
Is the agent you are interviewing asking the right questions?
Are you behind, and if so, how far behind are you? ----- This information is needed to know if we will be pressed for time to complete the sale.
How many mortgages do you have and who are the lenders? Who owns the loan?
Have you tried for a modification?
Are you paying your other bills? Credit cards, medical bills? --- This information is needed because if not, there is potential that you may end up with a judgement lien on your home that will make the sale more difficult.
Does the agent tell you you will need to sign an authorization letter?
Doing this allows the agent to negotiate with the lender on your behalf. If someone claims they don't need it because they have an " in " at the bank, run away, and run away FAST!!! The bank president couldn't negotiate on your behalf without your written permission, and NEITHER CAN THEY!
Does the agent explain the documentation that will be needed?
Hardship letter, paystubs ( a letter stating you are unemployed if you have no paystubs), bank statements, IRS form 4506-T ( or tax returns ), and a financial form detailing your monthly income and expenses.
Does the agent give you proper disclosures?
There are some new MARS ( Mortgage Relief Assistance Sercices ) disclosures regarding short sales that are mandated by the Federal Trade Commission. Failure of the agent to give you this disclosure could cost them well in excess of $10,000 in fines. If they are not in tune enough to give you a disclosure that could cost them a ton of money, they probably shouldn't be handling YOUR short sale!!! ( See the " IMPORTANT NOTICE" at the bottom of this blog post )!
Do they advise you to also speak with an attorney and a CPA regarding potential legal or tax issues?
Our job is to sell your home and negotiate the terms of your lender, and we can not give legal or tax advice. Can you say, Jack of all trades, master of none?
Do they email ( or fax) you paperwork in advance so you have time to review it?
I ALWAYS give my clients ( and potential clients ) time to review the CMA I prepared and also the documentation they will be signing. This way you have time to review everything, and ask any questions. Short sale or regular sale, I want my clients to be as informed as possible about the process of selling their home as possible, not to just sign on the dotted line and not worry about a thing.
Patrick
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