Posted: Wed Dec 31, 2008 5:27 pm Post subject: Short Sales Closing to Seller
Can someone tell me if there are closing costs to a homeowner selling their home via short sale ? I can barely make the reduced payments let along come up with my share of closing cost money. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
I guess, you have been delinquent in your mortgage payments and as a result of which you are opting for a short sale. As far as I know, there are no closing costs associated with short sales. However, after the short sale is done by the lender, the deficient amount resulting from the sale of the property needs to be paid to the lender.
Usually when a house is sold off, the buyer often requests the seller to pay a part of the closing costs. The seller pays the costs in the form of seller concessions of 3-6% of the home sale price. Say, if you are selling off a house priced at $100,000 and you offer a seller concession of 4% (that is, $4000), then you are actually accepting $96,000 as the home sale price.
Whether the seller needs to pay the closing costs is something that is stated on the sales contract. It's not mandatory for the seller to pay the closing costs. It is something that banks and lenders allow so as to help the buyer purchase the home with a mortgage.
Now, yours is a case of short sale wherein you'll get much less than your mortgage balance. As it is, your home value has dropped; that's why the transaction is termed as a short sale. Therefore, I think you shouldn't offer to pay the closing costs as part of the sales contract. And, contact a real estate attorney to help you prepare the sales contract.
I hope things get on well with time and you have a happy new year ahead.
Posted: Thu Jan 08, 2009 7:33 pm Post subject: short sale?
I have been told that in a short sell, the home owner only has to pay the sales tax on the difference between what is owed and what it sells for. Does the lender absorb the loss?
In case of short sale, the lender has the right to claim the deficient amount from you. So you will be obligated to pay that the deficient amount (amount owed-amount recovered from the sale) to the lender. _________________ Procrastination is the enemy of your financial sucess
Hello, I just did a short sale. My bank issued me a short sale approval letter for the purchase offer price. All the closing costs, difference amt, past property taxes were absorbed by the bank. Bank dismissed my 4 months of missed payments as well. Hope this info helps..Maybe it depends on the bank as well. My mortgage acct now shows 0 balance.
Oscar Navarrete Guest
Posted: Thu Aug 20, 2009 5:33 pm Post subject: Short sale leavility
If I do a short sale what is my leavility with federal and state taxes.
smithsussane
