Despite the recent recovery in Housing prices, one of out of every 4 home is still under water. And Short Sales remains a viable option for San Jose Home Owners to Avoid Foreclosure. Factors to consider about the qualification of San Jose Short Sale Agent or San Jose Short Sale Broker should include the following:
DRE Status: Check whether the negotiator and the negotiator’s employing broker if any are both properly licensed. Short Sale negotiations is a licensed activity in California. So, your should check the Short Sale broker or Short Sale agent’s license status by using their Name at California Dept of Real Estate (DRE). Make sure that their license status is ACTIVE and there are no disciplinary actions reported on their license in case DRE violations.
Lender Experience: Every lender has their own unique Short Sale process. Some Lender such as Indy Mac won’t require the seller to be late for 60 days before they consider a Short Sale. Others like Wells Fargo will consider Short Sale without the owners missing any payments. Ask whether this Short Sale Agent has negotiated ANY loans with your lenders. Each Lender has their own forms and guidelines and it’s safer to hire an agent who has done a few Short Sales with your lender.
Third Party Negotiator: Find out if your Short Sale Agent, or Short Sale broker will hire a 3rd Party Negotiator to work with the bank. If your Broker or Agent are planning to use a 3rd party negotiator, then you need to interview them as well since they are the one’s representing you to the bank. This also complicates the Short Sale Process and could cause un-necessary delays.
3rd Party Fees: If your Short Sale Agent or Short Sale broker is going to hire a 3rd party negotiator, make certain you understand the fee schedule and who is going to pay for their services. Most lender do NOT pay for 3rd party negotiators. Make certain that the Negotiator’s fee and role are fully disclosed and approved by ALL parties including Buyer, Seller and the Short Sale Lenders involved in the transaction.
Negotiator fees should be reasonable and based on the amount of work and their prior experience. For instance if there are 2 loans to negotiate with 2 different banks, the fees would be higher compared to a Short Sale negotiation with only one loan.
Compliance: Make certain the Short Sale Agent or Short Sale Broker you are considering complies with Agency laws, RESPA, laws against fraud, and other MLS rules governing your State.The factors listed above are not exhaustive for retaining a legitimate Short Sale Negotiator or Agent. Compliance with all these factors does not guarantee that a Short Sale Agent or Negotiator is legitimate or qualified.Similarly, not complying with one or more factor does not necessarily mean that a short sale negotiator is a scam artist.
Also, don’t hesitate to contact Department of Housing and Urban Development (HUD) to have them assign you a counselor to help you explore ALL your options. So do your homework an interview several candidates before you decide on your Short Sale Agent.