With 1 out of every 4 home still under water, Short Sales remain a viable option for San Jose Home Owners to Avoid Foreclosure. Factors to consider about the qualification of your Short Sale Agent or Short Sale Negotiator should include the following:
1) Check whether the negotiator and the negotiator’s employing broker if any are both properly licensed. In most States, Short Sale negotiations is a licensed activity. You can check the Status of the broker and agent’s license status by using their Name at California Dept of Real Estate (DRE). Make sure that their license status is ACTIVE and look for any disciplinary actions reported on their license in case they have violated the DRE guidelines.
2) 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.
3) Inquire about the actual services that this Short Sale Agent will perform to facilitate and expedite the Short Sale Process.
4) 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.
5) 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.
6) Make certain that the individual or the entity paying for the Short Sale Negotiation service, is doing so voluntarily and has received an opportunity to consult with a real estate agent, attorney, accountant, or other professional as deemed appropriate.
7) Another important factor is to make absolutely certain that the Short Sale Negotiator does not get paid until after the negotiator fully completes each and every service the negotiator promises to perform. It’s customary for the Short Sale Negotiator to be paid at escrow which assures the property has been successfully sold and the Short Sale process has completed.
8) Finally, make sure whether the Short Sale Agent or Negotiator 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.
So do your homework an interview several candidates before you decide on your Short Sale Agent.