what does a short sale negotiator do? does he deal directly with the bank?

Asked by Buyer, Brea, CA Thu Feb 12, 2009

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Karen Parsons…, Agent, Laguna Beach, CA
Mon Jan 4, 2010

Yes a short sale negotiator is the person the seller designates to work with his lenders as his representative. It can be his agent, attorney, 3rd party or anyone else. It helps to have someone who is familar with the process and knows what banks will and will not accept. To push back on unreasonable demands and work with appraisers who are doing the appraisals. It's an art.....

The good news is there are many of us agents who have the experience to do this....I have short sale information on my website about the process for both sellers and buyers, if you would like to get a bit more information about short sales.

2 votes
Dave Gubler, Agent, Foothill Ranch, CA
Mon Dec 28, 2009
A short sale negotiator negotiates with the lender representatives. An inexperienced negotiator will put the entire transaction at risk as they will not have proficiency in the following areas:

- Refuting the banks assertions of current market value.
- Negotiating more than just a release of the lien(s). (Promissory Notes and Deficiency Judgments, etc.)
- Ability to escalate a short sale transaction to the proper individual or department within the lender organization.
2 votes
Krystal Lee…, Agent, Sevierville, TN
Wed Jun 24, 2009
~Yes they do deal direct

He/She is the person who writes out the lovely approval letters to get your home sold! It can take months and many different levels to get the "phone call" from these people. Don't mistake these people for the layers of customer service reps.

They are the persons who the bank authorizes a net price to..and you will never know the price...you just will know a "approved" or "denied" response from them =0)
1 vote
T, Home Buyer, 75237
Thu Feb 2, 2012
Does such Short Sale Negotiator usually have expertise in negotiating purchase of an REO property--which is actually not a shot sale?
0 votes
Ben Benita, , Gainesville, VA
Wed Aug 24, 2011
I am a short sale negotiator, have been since 2005 for agents all over the country (I actually coach privately as well)
A short sale negotiator is what EVERY AGENT IN THE COUNTRY should be using, make highest and best use of your time.
If you think you sitting on the phone dealing with the non-sense and games played by the banks is the best use of your time.......you have MUCH to learn!!!!!!!

All my best to everyone!!!!

Ben Benita, National Short Sale Negotiations Expert and Speaker

Office – 703-754-7551

Best Selling Author - "Are You More Likely To See Bigfoot Or A Short Sale Approval Letter?"
......Get your copy NOW, http://www.Amazon.com, under "Books, and "Short Sale Bigfoot", and GET YOUR SHORT SALES CLOSED!!!

National Radio Guest and CBS Radio Co-Host

Publisher - "News From Short Sale Beach" - the Metro Area's leading newsletter for short sale stories, negotiation tips, and, monthly motivation
0 votes
I just got my new short sale book published, go grab a copy on Amazon:

"Learning To Swim In The Short Sale Ocean"


All my best to everyone, email me if you want US to handle all of your short sale work (I am also available for sales meetings to go over the latest tips and trick to getting your short sale approved)!!!
Flag Mon Mar 30, 2015
Hello Ben-

Since you are a professional negotiator, I would like your opinion on matter of who needs to pay for the negotiator's fee. Our seller and their realtor is asking us, the buyer to pay for this fee. Is that normal business practice?

Thank you
Springfield, VA
Flag Thu Jan 23, 2014
Holly, , Jacksonville, FL
Thu Aug 18, 2011
If anyone has a question about govenrment/FHA short sales specifically Bank of America. I can answer your questions anytime. You can email me at hpalermo777@gmail.com. I am a negotiator with a bank which shall remain nameless ;) but I love to help agents out because prior to this job I was in the thick of it, so to speak, as an agent.
0 votes
Susan Walker, Home Buyer, Wardsboro, VT
Wed Jun 8, 2011
Our experience has been with a bad short sale negoiator, that the title holder contracted with, on the sale of his house, before the bank pulled his title. After many demands and asking for a 20% commission on the house, (we bit the bullet on that as we were still buying the house for much under it's current value). The negotiators' investor financing fell flat when they didn't believe our approved mortgage from a reputable bank. All this 1 day before our scheduled closing. Everyone involved has had to sacrifice with the exception of the negoiator. In my opinion:

The negotiator has to have a proven track record.
Stay away from negoiators who tell you, "I have lots of investors".
Short sales work best on a cash basis.
0 votes
Vincent Vill…, Agent, Chula Vista, CA
Tue Oct 12, 2010
On the other hand, on the banks side. The listing agent may be dealing with the (NEGOTIATOR) at the bank. The bank will assign this NEGOTIATOR to deal directly with the listing agent on all documentation to get the short sale approved. On the banks side the NEGOTIATOR may also be dealing with escrow once the short sale is approved.
0 votes
Vincent Vill…, Agent, Chula Vista, CA
Tue Oct 12, 2010
Yes, the short sale negotiator deals directly with the bank. Normally listing agents do their own short sale negotiations but you will find agents that are too busy to do their own short sale negotiations or the newer agents use negotiators as well.
Be careful , some listing agents try to pass the cost (if any) of the short sale negotiations to the buyer or even the seller but it should be stated on the MLS listing if that is so.
0 votes
Bud Ski, Home Buyer, Tavares, FL
Sat Aug 21, 2010
My recent experience with a short sale proved that the "Negotiator" works for the Bank! Listing agent and seller had an aprroved short sale package with a full list price. The buyers agent had a client's offer for full list price and was agreed to buy seller and Bank. The bank sent out the "Negotiator" and he wanted 5K more from the seller. Seller could not meet the demand for the extra $ and had to decline. Well, the buyer walked and the listing agent and buyer's agent were left with a lot of time spent on a no sale. Maybe it's just an Arizona thing but it sure was a crappy move by the Banks so called "Negotiator". Negotiators only work by email, no phone calls to resolve issue.
0 votes
Sean Jones, , New York, NY
Mon Jun 7, 2010
Alot of great answers! I work in short sales from time to time myself in the mortgage industry. I've worked a few deals with a great company called HSA, LLC http://WWW.HSASHORTSALES.COM. Pretty knowledeable guys and used to work as short sale negotiators which is pretty neat. I had good experiences with them and wanted to share the information with you.

From personal experience, these short sales can be quite time consuming and no one has the power or guarantee to get a quick approval! It doesn't matter who the company or agent is - the banks ultimately determine the timeframes. However, a good agent and/or short sale company can keep on top of these banks and stay persistent.

Good Luck and let me know if you have any further questions!
0 votes
Kevin, , Seattle, WA
Fri Sep 18, 2009
Short Sale Negotiator 101

Short Sale Negotiators should be persistent yet kind

Short Sale Negotiators should understand everything there is to foreclosure & mortgage law in every state they service

Short Sale Negotiators should be extremely organized

Short Sale Negotiators should work in teams

Short Sale Negotiators should, in most cases, not be the agent in the transaction

Short Sale Negotiators should have a track record of successful closings with a 90% + success rate (there is NO room to allow your negotiator to LEARN how to do short sales from YOUR short sale!)

Short Sale Negotiators should know what lenders are willing to do/not to do before even entering negotiations

See the blog for more info. on what short sale negotiatiors should do, or most importantly, KNOW.
0 votes
Shenoy, , Charlotte, NC
Wed Aug 26, 2009
A short sale negotiator works out the best deal for the seller, the buyer and the lender. Coming from the lender/servicer perspective, I can tell you that each party has completely different motivations.

I have managed a reporting operations for one of the top three servicing companies and more recently have been involved in getting the largest bank in US compliant with the Federal regulations for a $1.5 trillion portfolio of mortgage loans, a good portion of it defaulted loans.

I am currently in the business of brokering large short sale payoff deals with the bank. I also am open to taking on negotiation of loan by loan short sale packages and can guarantee fast turnaround. My fees are part fixed, part nominal % based on your profit.

Contact me at greenbricks at yahoo dot com or call 561 306 7018 to discuss this further

S Shenoy
0 votes
Aaron Zapata, Agent, Placentia, CA
Wed Jul 8, 2009
you're right on when you say short sales are frustrating! short sale negotiators come in all shapes and sizes. some are good, some are bad. some get the job done and others don't. since you are buying, you really don't get any say in that though.

i have a property that is coming on the market in brea between $520k and $540k that wil not be a short sale or bank repo. 4 bed 2 bath 1600+sq ft. great neighborhood. if that's in your price range, email me direct for a private showing. it's not on the market yet.

aaron zapata, prudential ca realty BREA
0 votes
David Chambe…, , Saint Petersburg, FL
Mon Feb 16, 2009
Veruska, you have some good answers here but I want to make sure you are not mislead. Negotiating a shortsale is a lot of work but it is not a full time job, If an agent has done them before they could work on a lot of them at the same time.

Some of the deal is in the person you chose but almost all of it is in the package that they prepare, very little must be said to the bank if the package is put together well.
0 votes
Karen Parsons…, Agent, Laguna Beach, CA
Mon Feb 16, 2009

It's all in the way it's handled! I really don't want my buyers to work on short sales unless we can get the listing agent to agree to some of our terms. First....if they don't have a specific negotiator, I want my escrow person on it. And I only want to offer if they are willing to open escrow with our offer and only send our offer to the bank. Sure...sometimes the bank comes back and asks if there are other offers....but more often, they just say yes or no to us. It goes pretty fast.

Our market mostly has short sales and bank-owned...but most agents who are still out there are getting pretty good at it. I'm sure your agent is on top of this!

0 votes
Buyer, , Brea, CA
Mon Feb 16, 2009
well it seems that the sellers agent had to get the payoff on the 1st mortgage, since the property has a 1st and 2nd mortgage and the listing agent is sending it to her short sale negotiator ( i guess he is negotiating it with the bank). URGGGGH! These short sales are such a pain but it seems that any property I go towards is a short sale with todays market.....
0 votes
Marie Avery-…, Agent, Bradenton, FL
Mon Feb 16, 2009
I personally have tried a short sale negotiating company which my seller selected. They charged alot of money but in the end I did most of the work. I also know someone who used an attorney that stated he did it, and in the end, the seller , a realtor, did most of the work. I have just been doing the work myself, I feel like I'm more informed about what is going on and at the final stage am more aggressive about getting the deal done. You need alot of tenacity and knowledge to get the short sales closed. So far i have been successful.
0 votes
Karen Parsons…, Agent, Laguna Beach, CA
Mon Feb 16, 2009
Hi Veruska,

Yes if there is a third party short sale negotiator, it's someone who is working on behalf of the seller to work with the bank. It's really more of a coordinator position. It's important to maintain contact with the bank as the process goes along and to develop a relationship with the bank representative. I don't think that agents are the best to do this....as listing agent, I have an escrow officer who has a representative in her office who does this for us. I find this works very well, since alot of the items requested by the bank do come from escrow. And then they are completely ready to go once the approval comes in. And she does not charge me anything for this service....but I give her lots of business too. I am averaging 45 days start to finish. I'm also finding that often I can use them when I represent the buyer as well. Many listing agents do not have the experience to work a short sale successfully and are happy to have me take that part over for them.

Hope this helps! Let me know if you have any other questions.

0 votes
Jacqueline W…, Agent, Irvine, CA
Fri Feb 13, 2009
I agree with Penny's answer below. Unfortunately, there are many agents trying to sell homes via the short sale process who have no idea how to evaluate the Sellers situation to see if s/he will actually qualify for a short sale and then, once an offer comes in, are not able to effectively present a package to the bank or negotiate the best terms for the Seller. This results in many Buyers waiting in anticipation for several months, only to get a "no" at the end of the process.

We use the services of a short sale negotiator who has been in the business since the last time the real market took a turn for the worse and who has sucessfully evaluated and negotiated 1000+ short sale transactions and, yes, we have the short sale approval letters to prove it! Our negotiator interacts directly with the bank's representatives to get the deal approved - a full time job that can not effectively be done by an agent unless that one transaction is all s/he is focusing on.

As a Seller, a succesful short sale offers relief to the stress of having to go through a foreclosure or the potential future financial impacts of doing a loan modification. As a Buyer, some of the best deals on the market result from a successful short sale. However, both Buyers and Sellers have to make sure there is qualified and experienced representation on both sides of the transaction if they are to achieve their ultimate goals.
0 votes
Penny O'Brien, Agent, Las Vegas, NV
Thu Feb 12, 2009
I can tell you that I wouldn't even try to do a short sale deal without using a faciliator (mitigation specialist) the person I work my deals with has connections with the proper people within the bank who owns the property. She can almost tell you before you submitt the package of whether the bank/banks will accept the offer. So when you're wanting to write a contract make sure your agent works with a faciliator. It will cost you a little bit of money but it is worth it.

I hope this helps. Happy house buying... Penny
0 votes
Jeff and Che…, Agent, Encino, CA
Thu Feb 12, 2009
I am not sure what you are referring to when you write "short sale negotiator". That's what we call the person at the bank that negotiates the short sale. If you are referring to the agent or person that represents the seller than yes we (as agents) deal directly with the bank.
If this did not answer your questions please feel welcome to contact us.

Jeff and Cheryl Fox

Properties Plus
818-995-9108 Office
800-917-8080 Toll Free
818-207-2013 Cell
Email: mail@jeffandcherylfox.com
Webstie: http://www.jeffandcherylfox.com

16133 Ventura Blvd. 7th Floor
Encino, CA 91436
0 votes
Thom Colby, Agent, Irvine, CA
Thu Feb 12, 2009

In the simplest of terms, a Short Sale Negotiator (on the seller's side of the transaction is typically the Listing Agent) negotiates with the current mortgage holder for a "Short Payoff". For example, if you own a property and have a mortgage of $500,000 and that property is listed for sale and receives an offer of "true market value" of $300,000 - the short sale negotiator (or Listing Agent) negotiates with the bank to accept that offer and close the transaction.

100% of my business this past year has been Listing Short Sale Properties. I've had a successful track record of getting short sales accepted and closed - even in the most difficult circumstances such as 1, 2 or 3 loans on the property. It's tricky and there's a science to getting it done.

Best of luck and call if you need more help!

Thom Colby
Broker & Realtor
Southern CA
949-887-5500 - OC
562-422-4000 - LA
Web Reference:  http://www.thomcolby.com
0 votes
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