Need Some Direction With My first Short Sale

[Dee Xixi]

I am working on my first shortsale, but I am so confuse. After talking to my RE agent, she even get me more confuse.
Here's the scenario please give me some guidance:
I have the home owner all paperwork, he owes 365k on the mortgage but when I look on Realtytrac the property value is 311K, is that the value to offer the bank for it?
What arrangement should i make with RE agent about commission?
Should I let her does the short sale or I do it myself?
The agent gave some of her shortsale package form, should I used her form or I can buy mine off the internet?
Anyone experience with HomeEq loss mitigation dept?
Anything I can do to maximize my profit?
Should I give the home owner some of the profit.
Thanks for any help!!!

[Scott Hubbard]

1. If your buying the property as an investment, you will need to know several things.

a) What are the distressed comparables selling for in the area?

b) What are the repair costs going to be?

c) How long are similar homes on the market?

2. Is the property listed in the MLS? If so, then you should offer the listing agent 2% and tell them you handle the negotiation with the bank ALWAYS. Few agents do not know how to do short sales and fewer know how to negotiate a short sale on behalf of an investor.

3. Use your own forms whenever possible. Keep it simple.

4. Since you are new to this, I would suggest finding an experienced negotiator

Bottom line, either hire a negotiator (good ones typically pay for themselves by getting you a better price) or learn to negotiate on your own. Never hire an agent to do it, you will typically pay them more than they are worth.

Also, a negotiator should have the forms necessary to handle the short sale.

Good Luck!