What Do You Do When Your Agent Refuses to Show You Short Sales

What do you do when your real estate agent doesn't want to show you short sales. Do you feel that the agent is not looking out for your best interest? Do you sense that the agent doesn't want to invest too much time in the home search? Do they know how the short sales process works?


The truth is that some short sale transactions take months to close. However, other short sale transactions are quick. The difference between the two are any number of factors.

In my case the one that took one year to complete was a small home in Milpitas with Bank of America holding the first lien and also the second junior lien. The bank moved along at a good pace through the equator portal system. The buyers did what they needed to do. The problem that my sellers faced was getting committed buyers who were willing to hang on for 3-4 months. This deal that should have taken only a few months ended up taking a year. We went through two cash buyers who made offers and walked at the 11th hour. Finally the third buyer (who was an FHA buyer) was committed and hung in there. The third time was truly a charm.

The short sale that took me only three weeks to receive a "conditional approval" was Household Finance Corp as the lienholder. HFC had a reputation for lending to "high risk" buyers at a higher than average interest rate. Nevertheless, they made a decision quickly. The transaction closed.

Both sellers were appreciative of my efforts as their listing agent and they were equally thankful that the buyers agent showed their home. They were glad that the buyers made offers and were patient. The buyers helped the sellers move on.

I tell my buyers that we should look at Short Sales as a possible purchase because otherwise I would not be putting the buyers interest before mine. This is at the root of the agent-client relationship. Performing my fiduciary duty as a real estate agent is mandated by the state of California and the DRE.

These are some important things to to look out for before writing an offer:

1. Has the seller submitted the hardship package to the bank?

2. Does the listing agent have a valid "conditional approval" right now? Will the bank allow the listing agent to switch out the buyers?

3. Which banks hold the note to the property? (some banks are easier to work with than others)

4. How many loans against the property are there? If more than one, are they with the same bank?

5. When is the Trustee Sale?

6. Does the listing agent have short sale experience? How many successful transactions have they completed? With this bank or a different bank? Buying side or listing side? (you need someone who has worked this particular bank and has been successful as a listing agent)

7. Will the seller pay all past due HOA fees/assessments, property taxes, and any other liens against the property prior to transfering the property? In writing? (this can be a deal breaker at the end of escrow)

8. How many offers will be submitted to the bank at the same time? (some agents submit up to three offers at the same time)


There are many questions to ask a listing agent, however, these are important. If you need further assistance on dealing with a Short Sale situation, please contact me at (408) 460-8401. I have experience being a listing agent for REOs and Short Sales with most major banks. I also have represented many buyers in short sales and reo purchases.