Why Real Estate Agents Should Not Negotiate Short Sale Alone
Millions of American homeowners are behind on their mortgages. This is due to many unfortunate circumstances including job loss, loss of income, medical problems, divorce, death of a spouse, loss of business due to an economic downturn, and bad loans.
Up until the recession and market crash of 2008, the only generally accepted option for people behind on their mortgages was a Foreclosure. Foreclosures are incredibly damaging to credit reports, making interest rates on credit cards very high, and can even affect employment with employers who run credit checks.
What It Means to Sell Short
A short sale is an option for homeowners who want to sell their homes for less than what they owe their lenders for their mortgage. While both short sales and foreclosure will leave the homeowner with negative credit reporting, the credit impact is less by selling short because it is more responsible and proactive than foreclosing. It’s a difference of being able to buy a home in less than two years after a short sale versus being able to buy a home in five years after a foreclosure.
And, of course, there is an incentive for real estate agents to encourage short sales rather than because agents can profit from short sales. However, there are also many agents who ignore short sales and make other suggestions to buyers. This is typical because these agents have been burned in the past by failed short sales that were listed poorly by a listing agent and didn’t have an attorney to qualify the transaction.
While there is a commission to be earned in short sale for real estate agents, there is also a lot of risks– that is, unless agents work with qualified attorneys. Here is why agents should not negotiate short sales alone…
It Is Illegal to Negotiate Alone
Short sales inherently come with legal issues, credit and tax implications, and potentially expensive consequences. So short sales are considered a practice of law. Because short sales require legal advice, that prohibits real estate agents from negotiating the sales on two fronts:
• It is a Class 1 misdemeanor to advise on legal issues as a non-attorney.
• It is against most agents’ Errors and Omissions policies which exclude any unauthorized practice of law.
So considering the risks and consequences involved in a short sale, it makes sense to hire an attorney.
The Benefits of Hiring an Attorney to Help
Many real estate agents end up spending a lot of time and money on their listing only to find out that their transactions can’t be negotiated. By working with a qualified attorney, agents can find out if a deal will go through before taking a listing and wasting time and money.
Here are some other benefits to hiring an attorney to assist with a short sale:
• No risk of breaking laws by giving advice agents are not qualified to give.
• They negotiate liens against the property and not just the mortgage
• More likely to close a short sale if foreclosure is impending
• Seller’s bankruptcy proceedings can be handled alongside the short sale
• Can focus on marketing and selling real estate rather than spending time negotiating with a bank Ensured commission
Why Use Kayser Law Firm to Negotiate Short Sales
Kayser focuses on short sales only and can fast track the process. Working with agents who have the resources to stop foreclosures is key to a successful short sale. Kayser deals with the banks and foreclosure attorneys in St. Louis to get the job done. Many agents using Kayser have multiple short-sale deals pending because their time is freed up from legal issues to take on more listings.
Kayser offers FREE Consultation about short sales. We will speak with whoever you need to ensure you concentrate your efforts on worthy sales.