Who Is Negotiating Your Short Sale?

Imagine you are selling your home (it’s a short sale, you owe more than your home is worth). Let’s say you called the Realtor that sold you your home, they state they “do short sales”, so you say great- I can’t afford my home, I need to sell it and get a fresh start!

Sometimes- this is easier said than done. One question most home sellers don’t think to ask “WHO IS NEGOTIATING WITH MY LENDER”. This could not be more important! This is the person that will be calling your lender WEEKLY (well you hope), will have updates and will get the short sale approved.

There are a couple of options for negotiators:

1. The Realtor negotiates themselves (I personally prefer this – I like to control the deal, know where we are and hopefully keep the buyer interested). My duty is to my Seller to get the short sale completed so they can move on with their lives.

2. The Realtor hires a third party negotiator (this could be another Realtor or a company who negotiates these deals). The downfall with this scenario is YOUR Realtor never quite knows where the negotiation is. The third party negotiator claims they call every week, gives really lame updates, and generally takes about twice as long to get any short sale done.

So why on earth do Realtors use these third party negotiators?

Well – I think in general, most Realtors don’t want to follow up weekly, they would rather pass on that duty. However, there are too many potential pitfalls.

Pitfalls of a Third Party Negotiator

* Short sale takes too long- buyer gets antsy and cancels the deal. The Seller is left with no buyer
* The short sale takes twice as long- every month the Seller is getting another ding on their credit for the missed payments
* Short sale doesn’t get completed- the Negotiator wasn’t watching the Foreclosure date and the home forecloses