It seems everyone is claiming to be a “Short Sale Expert”. Many REALTORs, Agencies and Lawyers have started adding a tag-line to that effect to their marketing.

We are in a time where many people are desperate financially and as is always the case, there are those out there who are eager to take advantage of people who are looking for help. There are some companies out there that are professional and legitimate that focus on short sales, but you have to know the difference between the good and the bad…and beware of the wolf in sheep’s clothing.

To truly be an expert you have to have closed a variety of short sale transactions with a myriad of complicating factors, in a slew of different situations. You have to have closed short sales with every lender (as every lender has different guidelines), Freddie and Fannie, primary home, second home, multi-lien holders, HELOC loans and a whole bunch of other factors that dictate the direction of the approval process. Personally, I believe you have to live and breathe short sales on a daily basis to consider yourself an expert as guidelines and lender protocol can change that fast.

In a recent short sale negotiation (where we were getting nowhere with the bank’s customer service representatives), we made our appeal for approval directly to the CEO of the bank and sent copies of our communication to The President of The United States. Why? Because this CEO has been making public statements to Congress that he is actively working to prevent foreclosures. I say… put your money where your mouth is Mr. CEO. We are holding you accountable for your claims.

If you need help and think that a short sale is your solution, then interview several companies — not just the one that advertises to be “The Expert”. Here are some things to look for:

** Ask how many short sales they have closed, and how long they have been involved in short sales. Ask who negotiates the short sales. Ask if they have daily access to attorneys. Ask who the qualified specialist is and what makes them qualified? Ask if the qualified person is actually doing the negotiating on your behalf (as opposed to using their qualifications as marketing tools to lure more clients their way). Also ask for past references of clients they have helped with short sales.

** If they ask for any money up-front, consider that a red-flag. I would be very wary of any company asking for any type of compensation before they performed any work. Real estate agents get paid at closing and ONLY at closing. That’s the deal REALTORs signed up for when they got their license and nothing has changed. Agents must produce results to get paid.

** Be wary of any company that claims to specialize in this type of negotiation but has no affiliation to a real estate broker. There are companies out there that are running scams or offer no real service and are not affiliated with a broker for a reason. Brokers have to follow a legal, moral, and ethical code to our clients and consumers. These types of companies do not affiliate with brokers for that very reason, so they don’t have to follow these codes.

As always… that’s my opinion.