First SS: Must the property be listed?

I’m taking a stab at my first short sale because I think the numbers could work. The owner called me directly, and then I started the dialogue with the lender (AMC Mortgage).

AMC faxed over the short-sale package, which asks for a copy of the listing agreement.

There is no listing agreement because there is no listing.

Will AMC still negotiate with me if the property has never officially been on the market?

I think my offer is pretty fair, but I don’t doubt that they could get more by listing it.


In my ss package, I include a letter written to the lender explaining why the seller could not get a realtor to list which could be because of: no equity, the home not being marketable in current condition, dangerous neighborhood, etc.

I have not heard of other short salers doing this(though Im sure some do), but it has worked for me.


That’s a good idea, although I think there are a number of Realtors (at least in this market where there are so many foreclosures) who will take no-equity, short-sale listings.

It’s worth a shot, though. Thank you for the reply.

When I hear back from AMC, I’ll update the thread.

Again, thanks.

I have used the letter to the lender explaining the no equity, limited time frame, etc. And that has worked many times.

Otherwise find yourself a realtor and ask them if they would like to work with you and make $500-$1000 per deal. Since you will be the one who brings in the listing and will have 99.9% of interaction with the homeowner and lender this will work with many new agents. The problem comes when the agents’ broker needs to oversee everything.

My problem with dealing with a realtor is that once they have a listing agreement (contract) they can lose your deal for you. They work under a set of laws that may conflict with your profit. They work for the seller, not you. That means they will do what is best for the seller, not you. A broker I once used lost me a deal I brought to him by continuing to market a property I submitted a contract on. He did the correct procedural and legal thing since the lender had accepted no offer. But did not look out for me in anyway.

Put a good investor friendly realtor on your REI team. Have him list any ss properties you are working on, this will make the loan company happy. Then when you get these properties through the ss process turn around and list them with the realtor on your team to sell them for your profit.

Make sure that realtor and broker are on your side. I have read that some brokers will hold these listings “in pocket” without putting it on the MLS, thus giving you more time to make the deal. Others will activily comtinue to show ‘your’ property lookiing for higher offers.