What Will A Short Sale Cost The Seller?

By
Real Estate Agent with Kathleen Cooper, Best Option-EXIT Realty Partners, REALTOR® 9084437/Brokers

What Will A Short Sale Cost The Seller?


When you are ready to sell your home, there are many fees associated with it.  In addition to paying off liens for mortgages on the property, you have to pay real estate commissions, taxes, attorney fees and other miscellaneous stuff.  These are the costs usually paid for by the seller, but in a short sale the lender pays these things.  

Sometimes the lender will also pay for:

  • Overdue taxes
  • Back association fees
  • Past due sewer and water fees
  • Payments to other lien holders
  • Closing costs requested by the buyer
What's in it for the lender?  It costs much more money to go through with the foreclosure proceedings and they risk having more damage done to the house when past homeowners are forced to move out.  

Almost all of the time the short sale is free for the seller.  Call us today to find out if a short sale is your best option - 508-523-8632.  We will setup a confidential consultation with you explaining the process and what you need to do to get started.  We're happy to help!  Check out these 5 signs that you may need to do a short sale.   

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short sales
what does a short sale cost the seller
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who pays for the short sale

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Ambassador
416,826
Stacey Smith
Your Orange County Beach Cities Realtor
Harcourt's Prime Properties

That is good information, because sometimes why a troubled homeowner wont seek help from a realtor is because they think that it is going to cost them money... Homeowners that are wanting to short sale their home pays NOTHING!

October 17, 2010 09:19 PM
Rainmaker
1,674,034
Lou Ludwig
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO
Ludwig & Associates

Kathleen

Thanks for sharing an insightful post on the sellers cost in a short sale.

Good luck and success.

Lou Ludwig

October 17, 2010 09:38 PM
Ambassador
766,127
Hannah Williams
Expertise in NE Philadelphia & Bucks County
Re/Max Eastern inc.

Kathleen.. Great information here !!!

HelpfulHannah

October 17, 2010 10:17 PM
Anonymous #4
Anonymous
Brett Malofsky

There are many instances where the sellers' attorneys, including our office on most occasions, ask for a retainer from the sellers. This is different than a "normal" real estate sale where we just get paid at the closing. Remember that in most short sales the attorneys are charging hourly because of the, well, feet-dragging by the sellers' lenders. Since we have no guaranty that the closing will go through and, unfortunately, in many more cases than in a normal deal, the deals do not go through, we need the retainer to ensure that we at least get paid some money for the countless hours that will be put into the deal. We wish we did not have to do this and we have not had any clients complain as they have already had to deal with their lenders and have experienced how much time will need to go into it.

Anything past the initial retainer will likely be eaten by the lender unless we are talking about a REALLY bad deal where an additional retainer might be required. I don't think we have had to ask for any additional retainers, but I figured I should throw that in there.

Let's also remember that all of these costs will be less money that the lender will be receiving, so the sellers should really hire a good attorney to make sure that the lender is waiving any deficiencies in the amount that the lender will be receiving.

October 18, 2010 07:06 AM
Rainer
239,935
Michele Miller ~ REALTOR®, LMC, HSE, CHS
"Your Full Service Professionals"
Keller Williams Greater Worcester

Interesting post Kathleen.

I think we need another name for Short Sales!

October 18, 2010 08:09 AM
Rainer
47,734
Kathleen Chase
Realtor
RE/Max Professional Associates

You know your short sales Kathleen! I know who I'll turn to if I have questions! Thanks for sharing your wealth of knowledge with sellers and agents alike! We can all learn from you!

October 18, 2010 11:55 AM
Rainmaker
1,003,436
Conrad Allen
Webster, Ma, Realtor
Re/Max Professional Associates

There is a cost to the seller.  It is the impact on their credit rating for years to come.  There is an impact to their neighbors and friends homes.  They have decreased values in the neighborhood.  There are costs with these short sales.  They are more insidious than the foreclosures.  At least lazy appraisers will know that it is a foreclosure.  That is not always the case with short sales.  They use them as "comps" which they are not.

There are unintended consequences of short sales.

October 20, 2010 03:07 PM
Rainmaker
360,807
Kathleen Cooper
EXIT Realty Partners - Broker, REALTOR®
Kathleen Cooper, Best Option-EXIT Realty Partners, REALTOR®

Yes, I did do a post about the effects the short sale will have on the seller's credit.  I've been doing a blogging series on short sales because there are so many things to cover with them and I love doing them!  =)

October 20, 2010 03:13 PM
Rainmaker
113,276
Pam Crawford
Owner-RE/MAX Prof. Assoc.,MBA, CDPE, CRS, ABR
RE/MAX Professional Associates

The lender also sometimes pick up the cost of the title V, as well as other expenses.

October 22, 2010 09:28 PM
Anonymous
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Rainmaker
360,807

Kathleen Cooper

EXIT Realty Partners - Broker, REALTOR®
What's My Home Worth?
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