Short sale negotiation is key

According the article published by the USA Today, many former homeowners find they are still in debt to their lenders, even after their short sale is successfully completed.

Although a short sale is supposed to help homeowners, who owe more on their mortgage than their home is worth, sell the property, proper negotiation is the key if these individuals want to be off the hook for the debt.

Plunging home values in across the country left many homeowners unable to sell their homes for enough money to cover what they owed on their first mortgages, let alone a second mortgage.

Some can work out deals to close their second mortgages. Often, lenders who issued a home-equity loan will accept $2,000 to $5,000 to let the homeowner walk away from the debt.

Other lenders seek to recoup more of the debt, requiring sellers to sign promissory notes to pay a portion later.

"But many sellers think that once the short sale is completed, they are free of liability. That's when the unwelcome calls can begin", USA Today article states.

If you are a real estat agent who's a subscriber of RealtyProx, use the system to your advantage. If you negotiate short sales yourself, make sure the lender not only promises in written, but signs a document clearly stating what responsibilities of the former borrower are. Keep an eye on your conversation log with bank's negotiators and refer to negotiators' previous statements before signing the agreement.

RealtyProx offers a lot of ways to stay in control and in the know. Use all these options to negotiate the best deal for your clients and avoid leaving them on the hook for thousands of dollars in debt.