How Can I Find a Qualified Realtor to Avoid Foreclosure?
In this market, you cannot afford to rely on an average agent. The importance of finding a Realtor who has the knowledge and experience to help guide you through this time can mean the difference between an unnecessary foreclosure on your credit history for the next 10 years and the possibility of buying again in just a couple of short years.
Here are a few tips of things to keep in mind when finding an agent to help you explore alternatives and avoid foreclosure.
1. Find out how much experience this agent has, specifically dealing with short sales. This is the most popular alternative to foreclosure. Ask them how many banks and which ones they've worked with. Ask about their success rate.
2. Keep an eye out for red flags when agents make statements like "Banks always..." or "Banks never...". There are no hard and fast rules when doing short sales; each situation is different and each bank is different. Even the documents required by each bank can vary, so, if your agent tells you "Banks always..." it's time to find a different agent, because this is a sign of inexperience.
3. Is your agent giving you financial advice? Another huge red flag. I've heard instances of agents telling sellers to file for bankruptcy so the home can be included in that. Giving financial advice is in no way, shape, or form the job of a Realtor and an educated one knows this. If you think you might be in a position to need to discuss something like bankruptcy, you need to talk to an attorney, not a real estate agent. Run away. Fast.
4. Ask your agent if they have resources that can help you through the process. Most agents have an experienced team of lenders, real estate attorneys, tax attorneys, and bankruptcy attorneys ready to refer you to. You may not need any of them, or you may need all of them. It all depends on your situation. If this agent is worth their weight, they will have this team and be ready to send you to any of them, to give you the help/advice you need. Since, like I said before, none of these areas are in a Realtor's job description.
5. Find out if your agent has a process for handling the short sale with the bank(s). Any experienced agent will have a tried and true process for handling the short sale with the bank. Of course this process will vary, depending on your specific situation, but for the most part, the bulk of the process will be the same. Timing of pricing, the process of gathering documents from the seller, the submission of those documents in a packet to the bank, and the number of offers submitted all should be specific and tactical. If your agent describes the process vaguely or says it isn't that important in the process, move on. All of these pieces play a role in a successful short sale and avoiding foreclosure.
6. Ask your Realtor how many offers they will submit to the bank(s). Their answer should be 1 and only 1, while gathering back-ups, in case the first buyers don't stick around for the whole process. Any agent who submits multiple offers into the bank is an amateur and will make things worse for your situation. Submitting more than one offer to the bank(s) at a time does nothing but confuse the lenders you're trying to persuade to approve the short sale. Lenders do not want multiple offers and neither do you. If your agent says they will only submit one offer, that is the right answer.
7. Ask how long the process will take. If the Realtor gives you an absolute deadline or timeline, you need to find another agent. Like I said before, each situation is different and each bank does things differently. Some can be done in weeks, other months. There are no definite answers, but there are things your agent can to do speed up the process. However, there is nothing they can do to give you an absolute answer.
Have other questions about finding an agent? Contact me- my consultations are free and confidential. I'm happy to help answer any questions you've got, concerning avoiding foreclosure.