A short sale is a viable alternative to foreclosure. We are seeing more and more of these transactions in the housing market. However, the process of the short sale is quite complex and percentage of failure is quite high because of the multiple levels of approvals and conditions. The process should be handled by a short sale specialist who is a highly knowledgeable and experienced professional that knows all the tricks to get the approval.
A typical short sale will probably require two experienced parties to effectively get the job done.
- Real estate agent. Preferably, you want someone who has a history of successful short sales.
- Short sale negotiator. This person handles the direct contact with the lender and negotiates the sale price down from what the lender might ask.
Some agents might take the negotiation role on themselves, but that can be pretty daunting so make sure they have a successful history before contracting for their services.
There are multiple parties involved beyond those representing you and that’s a big reason why you want to enlist professional help.
The process may require approval from junior lien-holders, HELOC lenders, special assessment liens, etc. Tax lien holders and mechanic’s lien holders appear as potential objectors of the approval process. They may prevent the short sale. So, the involvement of a wide array of parties, parameters and processes in a short sale makes it very complex and difficult.
You can see why a short sale specialist could be so important. It’s very frustrating to get a buyer and seller on the same page only to have the bank or perhaps an additional lien holder object.
The possibility of success in a short sale agreement depends on choosing a good short sale specialist.
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