Who Pays The Costs In A Short Sale?
New Castle County, DE –
You may wonder why a sales contract says the seller pays for certain costs and yet the bank covers the costs.
Here is how it works: The sales contract may have a certain clause say: “Seller to pay title and seller’s documentary stamp taxes.” How does the bank pay that cost if it says the seller is paying it?
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
In traditional real estate (non short sale), certain costs are normally paid by the seller and other costs by the buyer. For example, the seller doesn’t normally pay the buyer’s home inspector. In these cases, the seller is actually paying those costs. So sales contracts have always been written like that.
On a short sale, the costs are paid by the seller on the closing statement. But, you aren’t paying them. Instead, they are being subtracted from the sales price. The short sale lender gets what remains after the costs are paid. For example. Sales price: $100,000. All costs paid by the seller: $9,000. Net to the short sale lender: $91,000. The short sale lender is actually paying these costs by simply accepting the lower amount. That is why it is called a “Short Sale.” The lender is getting paid less than what they are owed. They would have to pay all of those costs if they foreclosed on the house and then sold it. So, they might as well pay those costs now with the short sale.
Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at wesell@teamsordelet.com.
I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have.
Or, if you prefer, you can call me at 302-476-2057
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification?
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Thanks for reading this, David Sordelet.
David is a Real Estate Consultant with The Team Sordelet Realty Group at Prudential Fox & Roach Realtors.
Phone: 302-476-2057. Email: wesell@teamsordelet.com.
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David Sordelet specializes in loan modification assistance and short sales in
David Sordelet, Prudential Fox & Roach Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why? Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding Foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision. You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
