Which real estate agent to use in a short sale?
January 7, 2013 8:12 AM Subscribe
Does it matter which real estate agent I use in a short sale? Is legal representation a necessary first step?
After many months of trying to re-finance / modify the loan on my house, my primary lender has informed me that modification is not possible (I owe $410k, house worth $275k) and that I should do a short sale. They stated that my foreclosure date is in April. They are dangling the possibility of $14k in moving assistance. They recommended a real estate agent to work with, whom I've never met.
I've called a lawyer to just get some feedback and she's in agreement that I should do a short sale, since I have not been able to modify the loan after 18 months of not paying the mortgage and the fact that I'm not working (steady employment has been spotty).
This weekend I looked at places to rent and found one. Of course the real estate agent representing the rental would like to sell my house. I understand that 6% commission is typical, with half going to buyer representative and half to seller representative, or about $7k to each agent.
Should I hire the lawyer for $450 to represent me? Does it matter which real estate agent I work with? Is that $14k they're dangling somehow linked to using their agent, or is there other precedent for getting some money for moving expenses?
After many months of trying to re-finance / modify the loan on my house, my primary lender has informed me that modification is not possible (I owe $410k, house worth $275k) and that I should do a short sale. They stated that my foreclosure date is in April. They are dangling the possibility of $14k in moving assistance. They recommended a real estate agent to work with, whom I've never met.
I've called a lawyer to just get some feedback and she's in agreement that I should do a short sale, since I have not been able to modify the loan after 18 months of not paying the mortgage and the fact that I'm not working (steady employment has been spotty).
This weekend I looked at places to rent and found one. Of course the real estate agent representing the rental would like to sell my house. I understand that 6% commission is typical, with half going to buyer representative and half to seller representative, or about $7k to each agent.
Should I hire the lawyer for $450 to represent me? Does it matter which real estate agent I work with? Is that $14k they're dangling somehow linked to using their agent, or is there other precedent for getting some money for moving expenses?
You absolutely want an agent that has significant experience in short sales. Check references and make sure the agent knows what he/she is doing. Short sales are a royal PITA. I have a friend that is an expert in them (not in CT unfortunately) and the stories I hear about clueless agents that claim to be experts after doing a 20 minute webinar are scary.
posted by COD at 8:25 AM on January 7, 2013 [1 favorite]
posted by COD at 8:25 AM on January 7, 2013 [1 favorite]
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posted by indigo4963 at 8:14 AM on January 7, 2013