Is your Idaho Realtor a Short Sale 'Expert"? Main Idaho Real Estate Insights
Just because they have done it once or even several times does not make them an expert. That sounds like 2005 when everyone was a Custom home builder.

Lots of talk about real estate, on the net. Yes there is always lots of talk on the net about real estate but what crazy times we are currently living in. As with any other event in history, we hope we can remember, learn and not re-live it but the reality is that we will forget "how it was" soon after it is over.

Currently, the discussion is all about the foreclosure, short sales and REO market. The two indicators of this are MLS listings and realtors. Lots of blogs and ads from realtors who have sold this type of property and are now 'experts'.


What is a short sale in Idaho?

  • An Idaho short sale is when a lender accepts a "discount" on the money that is owed to them by the homeowner.
  • This discount allows the homeowner to offer their home at an attractive price to potential buyers at prices below area averages in Idaho.



Why would the lender accept a discount?

  • Foreclosures are costly to lenders.  It takes a long time for a lender to foreclose on a home and the interest and legal fees can add up.
  • If a lender has an inventory of foreclosures they do not want more foreclosures added to their inventory. 
  • Loss mitigators have an incentive to work with homeowners and give them a viable alternative to foreclosure.

Idaho Short Sale determining factors

  • Whether the homeowner has a proven "hardship" case caused by layoffs, divorce, injury or illness.
  • The homeowner is unable to make future monthly obligations.
  • Whether the homeowner has other assets or any co-signers.
  • How many homes the lender has in inventory at the current time.
  • Whether it is more financially advantageous for the lender to offer a short sale or allow the property to go to foreclosure.

The Short Sale process

  • Acquire the services of a knowledgeable Realtor with a Certified Short Sales Specialist designation and a knowleadgable attorney, if necessary.
  • Contact the loss mitigation department of your lending institution and determine what the process is for starting a short sale and requesting a copy of their "short sales package".
  • Sign an "Authorization Letter" which authorizes your Idaho Short Sales Specialist to begin negotiations on your behalf. This authorization will not change the terms of your loan, it simply allows your representative to negotiate on your behalf.  A complete financial statement will also be required which is a snapshot of your financial condition.
  • Prepare a "Hardship Letter" which outlines the reason you are unable to make the monthly payment obligations and what other factors will keep you from making future monthly obligations.
  • Your lender will request a broker price opinion from your representative which includes condition of your home, comparable sold properties, and the overall condition of the current real estate market.
  • A HUD settlement statement outlining the proposed selling price and all associated costs is provided by your representative.
  • The lender will look at any offers made by ready, willing and able buyers and see if the offer makes economic sense compared to allowing foreclosure.
  • If your lender decides the short sales process is the best avenue available they will approve your proposed short sale and schedule the final process with your representative.

Elements of a Short Sale (required from homeowner)

  • Hardship Letter
  • Financial Statements
  • Income Tax Returns
  • Bank Statements
  • Pay Stubs
  • Other Documens (any other documents required from your lender)

Short Sales pitfalls to avoid

  • Do not low ball your offers. Lenders are loosing money when they discount your loan.  If you low ball your offer your lender will have no incentive to approve anIdaho Short Sale and will likely just allow your home to go into foreclosure. 
  • Never assume your lender has your best interest in mind.  They are looking out for themselves and themselves only. Their only goal is to limit the amount of loss to the bank. Only you and your short sales specialist have your best interest in mind.
  • Do not hire just anyone to represent you.  An inexperienced Realtor or attorney can cost you any chance of doing a short sale.  There are many Realtors that are attempting to do short sales in Idaho but do not have the experience to do them correctly. Short sales in Idaho are time consuming and require a strong and talented negotiator to negotiate on your behalf.
  • Many homeowners assume since they will be receiving now proceeds from their short sale that they should not continue maintaining their home. This is not true! Buyers are influenced by the condition of your home and if you keep your home maintained well it will expidite the sale of your home which is what you want. Neglect your home and you will likely be facing foreclosure.
  • Do not delay doing your part of the short sale process. Providing the hardship letter and financial statements in a timely manner will keep things running smoothly.  Lenders are processing thousands of short sales across the country and will not take any homeowner seriously that does not provide information on a timely manner.


Here are some tips to finding out if your 'expert' is an expert?

  1. How long have they been a realtor?
  2. How many foreclosures, short sales and REO transactions have they closed personally, not as part of a team?
  3. What formal training have they had?
  4. How well do they understand the legal part of the process? 
  5. Are they full time?
  6. Do they have a supporting team to ensure the process is smooth as possible and someone is on top of the bank?

Make sure your realtor is an actual experienced professional and not just an opportunist who will be selling whatever the flavor of the month is next week. I am not opposed to people following money, I just don't like bottom feeders.

Trey Langford

If you need some training I found these ads on Google-


  1. Short Sale Investing

    www.shortsaletruth.com      Secrets of the Pros - Free ebook on how to Invest in Short Sales
  2. Short Sale: Sell or Buy

    www.shortsalecenter.com      Free short sale information for homeowners, buyers, and agents
  3. 3 Hr Short Sale Training

    Secrets2ShortSales.com      Find Out How Ex-Loss Mitigator Taught Me To Master Short Sales
    1. Idaho Short Sale

      Learn How to Prevent Foreclosure.
      Foreclosure Alternatives & Options.
    2. How To Do Short Sales

      Make Millions by Negotiating
      Short Sales - Step-by-Step Guide
    3. Step-by-Step Short Sales

      Learn Step-by-Step How to Do Short
      Sales. Proven Home Study Course!
Posted by tlangford at 5/31/2009 12:27:00 PM
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Michelle Penick, Boise Idaho Real Estate Agent

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