Choosing a Realtor for a Short Sale or Foreclosure

When choosing a Realtor to represent you to either sell your home or buy a home that is in either a Short Sale or Foreclosure status, be sure to hire an experience agent the has had success with short sales and foreclosures. This process is very complex and difficult for a seasoned agent. Please do not waste your time and energy with someone who "thinks" they can do it. Hire an agent with the designations of a CDPE, Certified Distressed Property Expert. Go to CDPE.com and click on your state and then city. You will find very qualifies Realtors here. The Short Sales process is not what it sounds like, it does not take less time to close the house. The short sale is the seller is shorting the lender or investor what he owes to the bank. If his mortgage is $232,000 and he has an offer from a buyer for $200,000 the seller must get permission from the lender or mortgage holder and provide a hardship letter along with numerous bank statements, 401K statements, Blood work (just kidding) and these documents need to be updated every 60 days and then again just before the seller closes on the house. The Investor, which is usually Fannie Mae or Freddie Mac, must approve the short sale process and review the details of the buyer and offer as well. This can take as long as 2 to 6 mos. But the short sale process is getting better with response from the investors. They now realize what the Realtors have been telling them. To short sale a house is less costly to the bank. 1. their are people still living in the home and caring for the property, even though they are not making house payments. 2. The bank does not have to hire an attorney to foreclose on the seller and they will save as much as $19,000 on a house that was sold for $165,000 just 7 days before Wells Fargo was to foreclose on it. Foreclosed properties usually sell for 40% off of their last listed price. While short sales are averaging 21% off their last listed price and the seller is in the house maintaining it and occupying it. Which is good because, in most cases, it is a family that has no where to go and they love and have pride in their home and community. This will continue to keep the values up in the neighborhood where many short sales and foreclosures are and could cause a domino effect of lower values should others need to short sale their homes.  Everybody wins in a short sales as compared to foreclosure. But when the bank issues the foreclosure proceedings to the attorney, there is no stopping it. You must get the property closed with a short sale before the Judge or Magistrate orders the house to be sold on a specific day and the owners to move out. I was success with this process more than a few times. I knew the right people to call and get action from if the lender did not respond in a timely manner.

Bottom line is alway choose an agent that is CDPE, they have hours of education in this process and have to be certified and take an exam and have production to keep this designation. The Banks and lenders are now asking for the CDPE to represent the home owner in the short sale process because they have delt with too many agents that did not know what they were doing and cost the bank and the homeowner a short sale. The short sales is less harmfull on the homeowners credit as well. As soon as the house closes with the Short Sale and is recorded to the 3 Credit Bureaus, the homeowners credit score will shoot up 60 points. It will only take 2 years as opposed to 10 for a bank foreclosure and penalties by Fannie and Freddie to ever by another home they they will be the investor, which is about 85% of the mortgage loan market. A foreclosure is also bad for anyone that holds a security clearance as well. The military will not permit the soldier to carry on in an upward and higher ranking path. Go to my tab on this website to the Tab "Meet Pat Broghamer" and click on the "Distress Property Institute" and view and print the Foreclosure vs Short Sale report. This may motivate a seller to consider a short sale with an experienced Realtor. If the seller does not hire an experienced Realtor they could end up in the Foreclosure timing issue and cost them 8 additional years of agony due to poor credit score and costly insurance premium, higher interest rates to buy a car or have a credit card, etc. The seller is the person who hires the agent.

You ask, who pays the Realtors fees?  The lender or investor does. You the seller do not pay anything. But you are responsible for hiring the right Realtor with this kind of experience. When you have a unique illness you go to a specialist if you want to live thru it. Well this is no different. Get a specialist and tell the friend, neighbor or family member that is not qualified to sell your house because they are not a CDPE and that if they care at all for you and your family they will only want the best qualified person to handle it. They should respect that answer. If not, they are not a caring and compassionate friend, neighbor or family member. They are just selfish and out of their league. They will cost you dearly. Please go to the website www.CDPE.com and look at the FAQ's and look up a Realtor that is qualified. You are woth that.

Good luck, it is getting easier on the short sale process. Help is there for you. Pat Broghamer 843-725-8095  www.charlestonscluxuryrealestate.com

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