How Do I Become a Short Sale Negotiator?

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  • Written By: Helen Akers
  • Edited By: Jessica Seminara
  • Last Modified Date: 22 November 2019
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A real estate license is needed in most states in order to become a short sale negotiator. Depending on the area, additional local licensing requirements may be needed. Experience in short sale negotiation is highly recommended. This type of experience is usually obtained by performing the duties of various positions in the real estate and mortgage lending industry.

Short sale transactions occur when a property owner is significantly delinquent on his mortgage payments. The lending institution agrees to sell the property for an amount that is less than what the borrower owes on the outstanding loan balance. A short sale is considered to be a favorable alternative to a foreclosure since it preserves the borrower's credit rating and increases the chance that the lender will recoup some of its funds.

There are many positions in the real estate industry that could give someone exposure to short sale transactions. If someone wants to become a short sale negotiator, it is best to first obtain an industry related position, such as real estate agent, loan underwriter, escrow agent, loan processor or loan originator. Considerable negotiation skills and certain personality characteristics are needed to become a short sale negotiator.


While experience in an industry related position is recommended, those who wish to become a short sale negotiator will often need to meet proper licensing requirements as well. These may vary by local jurisdiction and it is best to check with area licensing boards. Typically a real estate or loan originator license is needed.

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 real estate vocational schools. Besides meeting all of the course requirements, a passing score on an official exam is needed.

Anyone who wishes to become a short sale negotiator should gain an understanding of the loan process. Individuals need to understand what a short sale loan is, how to negotiate with banks, how to get banks to agree to a short sale, and how to fill out the necessary paperwork. The borrower will usually have to demonstrate financial difficulty to the bank in order to get them to agree to a short sale transaction. A negotiator should be able to work with sensitive information and be able to convincingly document an argument for a short sale transaction.

Other important qualities that short sale negotiators should have are persistence and organization. Many lenders may first reject the idea of a short sale or conveniently "misplace" paperwork. It is important to have good follow-up skills and be able to overcome objections.


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Post 2

As far as I know, one does not need to be a licensed real estate agent in some states like Virginia, Maryland, DC or Florida. Does anyone else know about which states do not require a license?

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