A Seller’s Guide to Finding a Top-Notch Short Sale Realtor

A short sale, where a homeowner sells their property for less than their outstanding mortgage, can be a solution for homeowners facing financial hardships. Because there’s a lot of uncertainty surrounding a short sale, working with an experienced real estate agent is invaluable.

A short sale Realtor® is equipped with the specialized knowledge and experience required to guide homeowners through lender negotiations, paperwork, and potential buyers. Partnering with a short sale Realtor won’t just increase the chances of a successful transaction; it will also alleviate the stresses of a process that can often feel overwhelming.

If you decide that going the short sale route is your best option, you’ll want to work with an expert short sale real estate agent.

The short sale Realtor is not your ordinary agent

At first glance, the short sales process looks like your average transaction. You’ll find a real estate agent. They’ll then list your home, find a buyer, and negotiate the sale. But that’s where the similarities end.

Your short sale Realtor negotiates with the lending firm currently holding the property’s mortgage. The goal is to determine how much money the lender is willing to lose on the short sale. Unlike a traditional sale, the negotiation starts before the house is listed. A short sale real estate agent must get the lender’s approval to go ahead with a short sale.

Lenders want to recover as much money as they can. If the lender stands to make more money between the private mortgage insurance payout and selling the property themselves, a seller may have difficulty gaining lender approval.

This is where the short sale Realtor can flex their skills, having worked with lenders on previous short sales. As a result, they know what approach to use to hopefully persuade the lender that selling the property short would be in their best interest.

During the initial negotiations, the short sale real estate agent will ask you to put together a short sale package that explains why you’re seeking a short sale. In addition, it will include a hardship letter and your financial records for the past two years, if not more. Since you will be sharing your financial records — including any overdue and collection notices — you must hire an agent you can trust.

Mortgage delinquencies edged up in Q1 of 2024, according to MBa. Rising unemployment, dwindling personal savings, higher property taxes and insurance, along with increased credit card debt and delinquencies, have created challenging conditions for some homeowners to keep up with their mortgage payments.