5 Questions to Ask Your Orlando Short Sale Real Estate Agent

If you purchased or refinanced your Orlando area home in the past few years, and now need to sell, there is a good chance that you will either need to bring cash to closing or to conduct an Orlando short sale. If you find yourself in a position to do a short sale you will need to find an Orlando short sale real estate agent that specializes in short sales. Here are 5 Questions that you should ask your agent to see if he/she is qualified to conduct a short sale.

How Will a Short Sale Affect My Credit?

This post is not going to go into all the different factors involved in the credit scoring. You should not be asking your Short Sale Agent this question to find the "correct" answer. You should ask this question to get an honest answer. The honest answer is that they don't know. There is no way that they could know. However, the sooner you get your Orlando area short sale under contract and negotiated with your lender the better off you will be. If you ask this question and get any one of these responses, then proceed with caution:

• It's not as bad as a foreclosure
• It's worse than a foreclosure
• It will affect you about 100 points

There is no way that anyone can predict exactly how a short sale will affect your credit. Odds are that the agent doesn't even know your current credit score anyway. There is a good chance that you don't know your current credit score. The point is, your credit score is a complex and it is based on many different factors.

The one tangible thing that a Orlando area Short Sale Real Estate Agent should tell you is that if you want to buy a home in the future, Fannie Mae has incorporated under-writing guidelines that favor short sales over foreclosures.

If you have a short sale in your credit history, Fannie Mae will make you wait a minimum of 2 years before becoming eligible for one of their loans. If you have a foreclosure, you must wait a minimum of 5 years. Be wary of any agent that makes bold claims about what will and will not happen to your credit score.

How Many Short Sales Have You Completed?

The purpose of this question is not to seek out Mr. Top Producing Real Estate Agent. The purpose of this question is to test the waters about a basic level of experience in doing short sales. To be safe, you probably want to find an agent that has completed at least five or more short sales. More is better.

Short Sales can be a long and drawn out process. They can be frustrating. There have been many one time Orlando Short Sale Agents. It is too much of a roller coaster ride for many agents to handle. In addition, short sales require administrative support that far exceeds a normal transaction.

Do You Have Any Administrative Assistance?

This goes hand in hand with the above question. Getting an acceptable short sale file together is an exercise in patience in diligence. Keeping in constant contact with the lender is a whole additional job function that must be conducted. The entire process of the short sale incurs much more overhead than a traditional 30-45 day real estate transaction. It's not just the length of the process, it's the documentation and communication required to nurse the transaction.

If your Orlando Short Sale Real Estate Agent is a one man band, then a good follow up question is, "How many short sale files are you currently working on?" Look for signs of over-load. I work about 30-40 files at a time and I have a full time Loss Mitigation Negotiator. We employ an outside service, Florida Real Estate Negotiator, LLC that assists with negotiating of the files. Also look for someone that has experience and has successfully negotiated a minimum of 5-6 short sales.

How Long Will the Short Sale Process Take?

For me, and average short sale takes 90-120 days from the day that we execute a contract. Some have been done much quicker and some take much longer.
The point of this question is just an honesty check. Be wary of any agent that makes the process seem easy and painless. Anytime that you ask a bank (or anyone for that matter) to lose money, you can guarantee that they won't make it easy. Short Sales are no different and you should shy away from anyone that tells you otherwise.

Will I have to Sign a Promissory Note if I do a Short Sale?

This is probably the best question to ask your Orlando Short Sale Real Estate Agent. Many distressed home owners wonder if a deficiency judgment will be filed against them when they sell short. Others wonder if they will be forced to sign a promissory note. Many eager agents may make false claims about their abilities to negotiate with the bank. It is true that a good negotiator is more likely to get a bank to work in your favor than a bad short sale negotiator, but be wary of those that "guarantee" it.

As a Orlando Short Sale Real Estate Agent, I cannot make any claims about what the lender will or will not do. Sometimes they act rationally, and sometimes they don't. More often than not, I get them to see it my way, but not always. Any agent that claims 100% success has either done very few deals, or is lying. Period. Furthermore, during a short sale negotiation, the bank doesn't "do" anything to you. It's a negotiation. If you don't like the terms of the agreement, then you don't sign.

Just remember, if you are facing a short sale don't feel that you don't have a choice in selecting an agent. Many distressed sellers feel so bad about their situation that they just want help....from anyone. Short Sale Real Estate Agents earn commissions. They get paid for success. Interview them accordingly. Good Luck.

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)