A real estate agent is NOT needed for a short sale. The sad truth is most real estate agents will unknowingly hurt you in a short sale because they do not know or understand the short sale process. Just by reading the information at this website your knowledge is superior. Unless a Realtor is already involved in the transaction you’re better off without one.

There are exceptions to the rule and they are few and far between. If you find a Realtor that is successfully doing short sales with deep discounts(30-50%) they could be worth their weight in gold. I have nothing against Realtors but if they don’t earn their commission they don’t need to be involved.

The lender not only wants a Realtor involved but they want to see the property has been listed on the open market. Why? Lenders reason a listed property on the open market will fetch a higher price then a doing a short sale with an investor on an unlisted property. Before agreeing to a short sale they want to see what the open market brings. Why wouldn’t they since they are on the seller’s time and nickel.

The lender may be right… unfortunately it is not their decision to make. This is why you get the property under contract, control the deed, then politely inform the lender they have two choices: 1) work with you on a short sale or 2) take their chances with the foreclosure. The lenders do not want option 2 but they will act as if you have no choice. The lender will often bluff until the foreclosure date is quickly approaching.

Because the lenders are used to working with Realtors you can use this to your advantage two ways. 1) When making your short sale offer be sure to point out there is no Realtor involved and their net is increased by the 5% commission they are typically paying Realtors. You must do the math for them. 2) Since the lender is expecting to pay a Realtor 5% you can find a Straw Person Realtor to follow your instructions and make 5%. The financial arrangement you make with the Realtor is up to you… but keep it legal. This means you don’t get the 5%. In return the Realtor may list your properties for a deep discount, provide unlimited market research, etc. You’ll figure this out on your own.