Ignoring the merit of doing a short sale on your own or not, of course the seller has to pay the realtor if they use one.

> Reducing (or eliminating) the commission on a short sale only puts

> that money in the lender’s pocket, not yours.

If, for example, someone sells the house and the total proceeds after everything has been taken out for fees, paying of the mortgage etc. is -$8,000 then they owe that. If it is -$12,000 they owe that. Granted there might be cases where other deals are struck with the bank to avoid foreclosure but in the case where the owner is just selling it themselves then any costs they chose to take on they pay. The difference is not in whether they pay but the form of paying - in one case any costs reduce the check they receive. In the other the costs increase the check they have to write.

I also don't see any benefits for the homeowner. In fact, I see two additional points that haven't yet been discussed.

1. A good Realtor is a marketing EXPERT. Typically, they do the marketing at their own expense, not the sellers. Why would a homeowner take this chore and expense into their own hands, when the bank will pay a Realtor to handle it professionally?

2. If the homeowner fails in his attempt to market, negotiate, and close the deal, he then has a foreclosure on his hands. Why not hire a professional to give yourself the absolute best chance of selling the home before that happens?

The dollar amount that hits the credit report for the forgiven debt doesn't seem to matter. Bottom line is, if you have a short sale showing on your credit report it's not going to do you any favors. I can't see that saving money on a commission is going to make it any less damaging.

Well when you're smart enough to buy an overvalued property with a teaser ARM, you're probably smart enough to... oh, what?

Also...

I can't decide which of Jermon Sims three posts I like the best.

And they think the industry is screwed up now? ... lol. Just becuase you can doesn't mean you should.

Even as a reasonably experienced real estate agent, I don't to short sales. They require extra care, planning, and knowledge. The care and planning I can cover, but I haven't taken the time to learn the knowledge.

It is just foolhardy to attack a short sale without having experience. Jay is right on the money when he says that there really isn't a good reason for a consumer to play this game on their own.

I also would point out that i think there are plenty of consumers that are perfectly capable of handling a real estate transaction on their own. An agent isn't a requirement for all people in all markets... but just like the difference between representing yourself on a parking ticket and representing yourself on a real crime, there is a MAJOR difference between handling a "normal" sale and a short sale.

I am a real estate agent, that has exteme experience in short sales in Georgia, and I must agree, why the hassle if no benefit, and the lenders are tricky............LOOK OUT, THEY ARE IN TRAINING, AND SO AM I!!!!

CHECK OUT MY BLOG AT www.simsjermon.blogspot.com and email a response to simsjermon@yahoo.com...........Happy Selling !!!

Chris - hope everything works out!

(That was one of the funniest comments I've seen in a long time!)

I would comment on this blog but I'm removing my own spleen at 5:00. So I have to get ready for that. :)

Never ceases to amaze me what sellers think sometimes. Hard enough to get these things through when you know what you are doing.

Good Advice. Going to pass this to some of our agent friends! :)

Ignoring the merit of doing a short sale on your own or not, of course the seller has to pay the realtor if they use one.

> Reducing (or eliminating) the commission on a short sale only puts

> that money in the lenderu00e2u0080u0099s pocket, not yours.

If, for example, someone sells the house and the total proceeds after everything has been taken out for fees, paying of the mortgage etc. is -$8,000 then they owe that. If it is -$12,000 they owe that. Granted there might be cases where other deals are struck with the bank to avoid foreclosure but in the case where the owner is just selling it themselves then any costs they chose to take on they pay. The difference is not in whether they pay but the form of paying - in one case any costs reduce the check they receive. In the other the costs increase the check they have to write.

Great points Sandi! Thanks for stopping by!!

I also don't see any benefits for the homeowner. In fact, I see two additional points that haven't yet been discussed.

1. A good Realtor is a marketing EXPERT. Typically, they do the marketing at their own expense, not the sellers. Why would a homeowner take this chore and expense into their own hands, when the bank will pay a Realtor to handle it professionally?

2. If the homeowner fails in his attempt to market, negotiate, and close the deal, he then has a foreclosure on his hands. Why not hire a professional to give yourself the absolute best chance of selling the home before that happens?

The dollar amount that hits the credit report for the forgiven debt doesn't seem to matter. Bottom line is, if you have a short sale showing on your credit report it's not going to do you any favors. I can't see that saving money on a commission is going to make it any less damaging.

Thanks Athol pass it on www.simsjermon.blogspot.com..............Jermon Sims

Well when you're smart enough to buy an overvalued property with a teaser ARM, you're probably smart enough to... oh, what?

Also...

I can't decide which of Jermon Sims three posts I like the best.

And they think the industry is screwed up now? ... lol. Just becuase you can doesn't mean you should.

Even as a reasonably experienced real estate agent, I don't to short sales. They require extra care, planning, and knowledge. The care and planning I can cover, but I haven't taken the time to learn the knowledge.

It is just foolhardy to attack a short sale without having experience. Jay is right on the money when he says that there really isn't a good reason for a consumer to play this game on their own.

I also would point out that i think there are plenty of consumers that are perfectly capable of handling a real estate transaction on their own. An agent isn't a requirement for all people in all markets... but just like the difference between representing yourself on a parking ticket and representing yourself on a real crime, there is a MAJOR difference between handling a "normal" sale and a short sale.

I am a real estate agent, that has exteme experience in short sales in Georgia, and I must agree, why the hassle if no benefit, and the lenders are tricky............LOOK OUT, THEY ARE IN TRAINING, AND SO AM I!!!!

CHECK OUT MY BLOG AT www.simsjermon.blogspot.com and email a response to simsjermon@yahoo.com...........Happy Selling !!!

Chris - hope everything works out!

(That was one of the funniest comments I've seen in a long time!)

I would comment on this blog but I'm removing my own spleen at 5:00. So I have to get ready for that. :)