A real estate license is required for short sales negotiation, with additional local licensing requirements depending on the area. Experience in the real estate and mortgage lending industry is recommended. Short sales occur when a homeowner is delinquent on their mortgage payments, and a short sale negotiator must understand the lending process, have negotiation skills, and be organized and persistent.
A real estate license is required in most states to become a short sales negotiator. Depending on the area, additional local licensing requirements may be required. Experience in short sale trading is highly recommended. This type of experience is usually gained by performing a variety of roles in the real estate and mortgage lending industry.
Short sale transactions occur when a homeowner is significantly delinquent on their mortgage payments. The lending institution agrees to sell the property for less than what the borrower owes on the outstanding loan balance. A short sale is considered a favorable alternative to a foreclosure as it preserves the borrower’s credit rating and increases the chance that the lender will recover some of their funds.
There are many positions in real estate that can expose someone to short sale transactions. If someone wants to become a short sales negotiator, it is best to first get an industry-related position such as a realtor, loan underwriter, escrow agent, escrow agent, loan processor or loan originator. Considerable negotiation skills and certain personality traits are required to become a short sales negotiator.
While experience in an industry-related position is recommended, those looking to become a short sales trader will often also need to meet the appropriate licensing requirements. This can vary by local jurisdiction and is best checked with area licensing boards. Usually a real estate developer license or loans are required.
Licensing requirements usually involve a set of educational courses and exams. Real estate licenses can be obtained through community college course programs, online vendors, and professional real estate schools. In addition to meeting all course requirements, a passing score on an official exam is required.
Anyone wishing to become a short sales negotiator must understand the lending process. Individuals need to understand what a short loan is, how to negotiate with banks, how to get banks to agree to a short sale, and how to complete the necessary paperwork. The borrower will usually have to demonstrate financial hardship to the bank to get it to accept a short sale transaction. A trader must be able to work with confidential information and convincingly document a rationale for a short sale transaction.
Other important qualities that short selling negotiators must have are persistence and organization. Many lenders may first reject the idea of a short sale or conveniently “misplace” the paperwork. It is important to have good follow-up skills and be able to overcome objections.
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