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What do I have to pay for in a Short Sale?

Wednesday, October 24, 2018   /   by Tim Minjares

What do I have to pay for in a Short Sale?

Many people have been asking us this question, “What do I have to pay for in a short sale”.  The quick answer is, it may be nothing. Based on our experience of the short sales we have closed thus far, the costs associated with the sale of the property have been negotiated and paid for by the Lender.  Those costs may include: Realtor commissions, title and escrow fees, and even delinquent property taxes.

Some costs that Lenders may NOT pay for include: Delinquent HOA dues, IRS tax liens, mechanics liens, termite work (most of the time)… pretty much anything that 1/ does not involve paying another bank or 2/ is not a regular transactions cost,  the Lender may NOT pay.  However, as long as your agent knows up front of all the costs associated with the sale of your home, it can be negotiated to be paid for by some party other than the seller (meaning the lender or the buyer making the offer).  It is important to disclose to your agent all of this information from day 1, for example if the HOA dues are 6 months behind.

In the rare instance that the Lender requires the seller to bring money to the table to close a short sale (depending on how terms were negotiated), the seller may have the right to refuse those terms and not proceed with the short sale (if the contract and terms of the purchase agreement/counter offers were appropriately drafted to give the seller this protection).
A short sale involves many steps and having a realtor that is skilled in these areas can determine your success or failure rate.

Every case will be different, but As CSP Certified - Certified Short-Sale Professionals*, the Jonville Team has had a lot of experience and have been able to help many homeowners successfully close their short sale transactions. We know what most Lenders will require of sellers and the likelihood of those sellers having to come out of pocket to sell their home as a short sale.  If you have questions about your specific situation, please contact us.
Jonville Team | Keller Williams
1501 San Elijo Rd S. Suite 101-102
San Marcos, CA 92078
760-471-5098
DRE# 01410224
KW BRE# 01417209

Based on information from California Regional Multiple Listing Service, Inc. as of October 18, 2019. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.