Interview questions before real estate agent, buyers, or seller decide to work with a “third party short sale negotiator”
1. How long have you been in the “short sale negotiation” business (working with a real estate or LO license without the specific focus on short sales does not count.)
2. How many short sales have you successfully negotiated/closed?
3. What is your real estate OR loan originator license number?
4. What is the name of the company and list all the names of people with ownership interests.
5. How did you obtain your advertised methods: “I have special phone numbers to the lenders…I have special contacts with the lenders….I use special procedures.”
6. What work has been done thus far in the short sale process? For example: Have you received ALL seller paperwork confirming they qualify for a short sale?
7. What is your fee?
8. Is your fee negotiable?
9. What percentage of the time is your fee paid by the lender?
10. What percentage of the time is your fee paid by the licensed real estate agents involved in the transaction?
11. What percentage of the time is your fee paid by the buyer?
12. How/when is your fee paid? (red flag if the fee is paid outside of closing or upfront before any work is performed.)
13. Is the short sale negotiation company owned by the listing agent for the seller? (red flag)
14. Is the short sale negotiation company owned by the listing agent’s designated broker? (red flag)
15. Is the short sale negotiation company owned by another licensed real estate agent in the listing broker’s office? (red flag)
16. Is the short sale negotiation company owned by the selling agent or his/her broker? (red flag)
17. Is the real estate agent who referred this company going to receive a portion of the short sale negotiation fee? (red flag)
18. Is the seller going to receive part of the negotiator’s fee after the close of escrow? (red flag)
19. Is the lender/loss mitigation worker going to receive a part of the negotiation fee? (red flag)
20. Will the seller still be shown my offer if I select a different negotiation company other than the company recommended by the listing broker? (red flag)
21. What work will be performed for the fee paid?
Ask the short sale negotiator to respond to each of these questions in writing so you have a record of his/her response.