short sale realtor
Why Working With a Realtor Is Beneficial When Purchasing a REO or Short Sale?
January 5, 2012 | 
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Realtors have access to MLS listings, including REO’s and short sales. If you are thinking about buying either an REO or short sale, you should work with a Realtor who can help you shorten you search time and assist you with the negotiations on the property.
They can send you updates when new REO’s and short sales come on the market because they have instant access to this information through their local MLS. All REO’s are listed with local Realtors. You typically have to make an offer through a local Realtor when you buy one.
Having someone represent you in the negotiations is a good idea. Many buyers and investors work with their own buyer’s agent, while some like to work with the bank’s listing agent.
Realtors network with other Realtors and can provide you with information about the property such as whether there have been other offers, if the property has fallen out of contract and the reason it fell out and give you insight as to what price and terms the bank/seller is looking for.
Some Realtors specialize in distressed properties and have relationships with banks and distressed sellers, as well as other Realtors who also specialize in distressed properties. They may have access to REO and short sale properties that have not come on the market yet, giving you a heads up about them.
Realtors are knowledgeable about homes in their local areas that meet your criteria. They talk to sellers and neighbors who visit their open houses and respond to their mailers. They know the history of homes in the neighborhood and can access the recent sales in the area so you know what to offer on your REO or short sale property.
Realtors coordinate the closing process working with the closing agent, the bank, the seller, their attorney, and all other parties to the transaction. They will remind you of contract contingencies and help you go over the title report and other closing documents. They can refer you to vendors, including home inspectors, contractors and subcontractors, mortgage brokers and lenders, as well as recommend other real estate-related services that you might need.
Finding a Realtor
The best way to find a Realtor is by getting a referral from another investor, family member or friend who has had a positive experience with their Realtor.
You can also search online and look for Realtors who work in an area that you are interested in buying a home.
If you see a short sale sign or bank foreclosure sign with a Realtors’ name on it, you can call or email them. They provide you with free services and information. They earn their commissions when the property closes and are paid by the bank that own REO properties.
In a short sale, the seller’s bank will pay the Realtors commissions out of the short sale proceeds, provided the Realtor requests payment of the commissions in the contract.
While you could find your REO or short sale on your own, smart and savvy investors/buyers work with a Realtor because they recognize the value of doing so in both saving time and money.
Realtors are experts in housing markets in their area and understand how to deal with banks and distressed sellers and can offer their expertise to buyers and investors making it more likely that you secure your REO or short sale and help to make the closing process smoother and more enjoyable.
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Duties and Responsibilities of a Short Sale Realtor
The short sale realtor usually deals in mortgage money and comes to a point of understanding where they lowers the amount remaining on the loan, allowing the property holder to sell of the asset at a much reduced price to balance the payment of the loan.
It is an intricate business where they are supposed to offer advice and ensure that you speak to the proper council. As a short sale realtor, you need to devote loads of time and put in some uphill struggle. This sort of a sale includes a lot of parties including the property owner, the lender, the investor who owns the loan, the purchaser and the negotiator.
Duties & responsibilities
• The most important duty of a short sale realtor is to guide the clients through a probable way by which they are able to purchase a short sale home. They are looking forward to sale the property at a reduced price after discussing the steps needed to be taken that leads to the purchase of the short sale property.
• There are many short sale realtors who would be ready to help you in different scenarios but you have to be wise and sensible while choosing them. You got to identify the most efficient and effective dealer among them.
• The ideal realtor would come up with considerable ideas that would either work within your given funds and resources or else would discard the offer. If the short sale property does not give them some money, they would prefer not to sell the property.
• There are few realtors engaged in short selling process who does not charge a fee for their service and on the other hand there are also companies that are involved in scams. So be very alert while opting for this kind of services.
• Usually the realtors have the basic responsibility of solving your home and property requirements. While getting in touch with any of these companies, make sure you do an extensive research on the property you are looking for as well on the realtor company so that you get a proper return out of the investment you make.
The prime function
The short sale realtor includes specific expertise on the technicalities of a real property transaction and provides room to the sellers so that they gain monetarily by selling the property to the maximum bidder. The realtors assists the clients by offering suggestive measures to be adapted while selling a property and it includes identification of the potential buyers, the way you should negotiate, the tactic required to position your sale and tuning the dealing that would effect to maximum profit.
Understanding the Procedure of Short Sale
The short sale procedure still puzzles a lot of people, even if it was practice by many homeowners for several years now. Even agents are confused about the method. Some of them don’t even know how to explain to their clients the reason why they need to short sell their most treasured property.
Other agents don’t even know that banks act as lender in this kind of method and some don’t know short selling exists because of two things; Hardship and the seller owes more on the mortgage than the true value of the home. But what are the procedures of this method?
Check them out below;
1. Find a good realtor who can help you out with your deal – Finding the best realtor will definitely help boost your chances of qualifying for this method. They will let you figure out how you can qualify for it and will explain to you the primary reason(s) of a homeowner before they can short sale their properties.
2. Prepare an authorization letter that will be used by your realtor in all bank transactions – You will indicate in the letter that you are allowing your realtor to do all real estate transactions (including short selling) for you.
3. Make a seller’s hardship letter – Prepare a letter that says you are broke and can’t pay of your loan mortgage anymore. As what I have said above, being broke helps you qualify for this method.
4. Have a photocopy of your financial statement / Tax returns / Payroll stub – Banks will verify if what you have written in your hardship letter is accurate through your financial statement, tax returns and payroll stub.
5. Let your realtor do the talking – When you have completed everything, you may give all the documents to your realtor. Your realtor will be your mouth and even your ear until the end of the deal so just let him do his or her job and don’t be a bother, they know the real estate industry more than you do so just relax and trust your realtor all the way!
Additional Short Sale Tips
1. Don’t forget to hire a realtor – Always remember to hire a reputable realtor if you want to have a smooth sailing transaction. Ask friends and family members, perhaps some of them know a trusted realtor who can help you out. You can’t expect a great outcome on your transaction without a professional who can assist you.
2. Patience is a virtue – Processing of this method takes very long before they let your property undergo through it. But be patient and let your realtor do his job without destructing him or her, it is recommended to stay away from your realtor so he or she can concentrate freely on his job.
3. Make the most out of your time by enjoying your property while you are still the owner – While you are waiting for the result of this method, you may enjoy the last moments you will be in your most treasured home. Allow yourself to savor that wonderful moment until the very end.