In most states, a real estate license is required to work as a short sale negotiator. Additional local licensing requirements may be required depending on the area. Short-sale negotiation experience is highly recommended. This type of experience is typically gained through various positions in the real estate and mortgage lending industries.
When a property owner is significantly behind on his mortgage payments, a short sale is considered. The lending institution agrees to sell the property for a lower price than the outstanding loan balance owed by the borrower. A short sale is a better option than a foreclosure because it keeps the borrower’s credit score intact and increases the lender’s chances of recouping some of its money.
There are a variety of jobs in the real estate industry that could expose you to short sale transactions. It is best to first obtain an industry-related position, such as real estate agent, loan underwriter, escrow agent, loan processor, or loan originator, before becoming a short sale negotiator. To become a short sale negotiator, you’ll need a lot of negotiation skills and certain personality traits.
While prior work experience in a related field is preferred, those who want to work as a short sale negotiator must often meet licensing requirements as well. Local jurisdictions may have different requirements, so it’s best to check with the licensing boards in your area. A real estate or loan originator license is usually required.
The majority of licensing requirements include a series of educational courses and exams. Community college course programs, online vendors, and real estate vocational schools are all options for obtaining a real estate license. A passing score on an official exam is required in addition to meeting all of the course requirements.
Anyone interested in working as a short sale negotiator should learn about the loan process. Individuals must comprehend the meaning of a short sale loan, how to negotiate with banks, how to persuade banks to agree to a short sale, and how to complete the necessary paperwork. To get the bank to agree to a short sale, the borrower will usually have to demonstrate financial hardship. A negotiator should be able to work with sensitive information and document a case for a short sale transaction convincingly.
Persistence and organization are two other important qualities for short sale negotiators. Many lenders may initially dismiss the idea of a short sale or “misplace” paperwork. It’s critical to have strong follow-up skills and the ability to overcome obstacles.