Do you charge a homeowner for doing a short sales?

[Tom Bukacek]

I recently came across an investor who charges the homeowner $500 for performing a short sale on their behalf without any money back guarantee of success.

His rationale is that this will greatly increase the likelihood of their participation during the short sale process. He's lost many short sales because the seller will disappear during the process and when he cannot provide the bank with the sellers updated financial activity, the bank will go to auction with the property. Charging homeowners in advance greatly reduces the likelihood of this outcome.

What are you thoughts? Do you think this is the right way to do a short sale?