Home Selling in Monterey>Question Details

Big Dar, Home Seller in Monterey County, CA

I am not sure how it has gotten confused, but what I am inquiring about is my upcoming short sale. I want to now the cost that will incur to me????

Asked by Big Dar, Monterey County, CA Thu Sep 8, 2011

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Typically, the selling expenses are paid by the short sale lender.

However, and depending who the lender is, and what type of property you have....

If you have an HOA and you've been delinquent, the HOA can file a lien against the property and even file for foreclosure. This is why we encourage homeowners to keep up with their HOA payments because most short sale banks won't pay for HOA fees and fines.

If the buyer is using an FHA loan to buy your property, there are some stringent requirements. You may be asked to fix certain things before the loan could be granted.

Your buyer may ask for some repairs. If they are minor, you may consider acceding to the request to keep the file moving forward.

You should also maintain the insurance on your property, otherwise the bank will get a force play insurance and bill you.

It really all depends on the type of property, how much you owe and to whom,

Remember, you are asking the bank to forgive your loan....during this process, you are applying to see if you qualify. Not all people who apply are approved.
1 vote Thank Flag Link Sat Sep 10, 2011
The cost that incurs to the owner is paid out of the bank's proceeds, not out of the seller's pocket. The buyer, of course, has to pay his or her own costs as well.

http://www.shortsalespeople.com offers great information to questions such as what is a short sale and how it works, check it out .

By the way, I would recommend using a real estate agent, they will take a huge load off your back and not cost you anything. If you don't have one, the people on that website can refer you to a short sale specialist in your area.

Good luck to you and God bless!
1 vote Thank Flag Link Sat Sep 10, 2011
Hi Big Dar,
After reviewing your last two questions, I hope we haven't confused you. A short sale is not a 'right' and requires your lender(s) approval. In order to get approval you will need to prove financial hardship. The approval process requires you to submit various things to the lender including tax returns, bank statements and pay stubs. A realtor will be able to assist with this process. As mentioned there may or may not be any out of pocket costs to you, the seller. That said, there are potential tax consequences. It is recommended that you talk to a tax professional before proceeding.
Best of luck,
Web Reference: http://ocnorth.com
1 vote Thank Flag Link Thu Sep 8, 2011
Generally, all closing costs from the sellers end are covered by the banks proceeds. If there are additional expenses that the bank will not cover, it will be the responsibility of the buyer. If the buyer will not cover them, I can assure you that you will find a buyer who will.

It is assumed that the seller in a short sale is in financial distress and they are not expected to pay anything at closing. YOu must look into the HAFA short sale program as you may be eligible for up to $3,000 in moving assistance from this government program, learn about it here: http://www.shortsalespeople.com/portfolio_2/how-the-hafa-sho…

Good luck and God bless!
0 votes Thank Flag Link Thu Sep 15, 2011
Hello Big Dar I would like to try and help you with your situation. I and my associate work with a lawyer on the monterey peninisula. We have closed many short sales and the cost is only 500.00 for the whole deal. We work for you from start to finish and by working with a lawyer we can get the deal done right. He is able to tell you up froont whether or not it is the best thing for you to do. No matter how many hours are spent getting your Short sale to close it is only 500.00 and you also have the backiing of a lawyer to represent you so the bank can't come back at you at a later date and try to collect the difference. I highly recommend using a lawyer and a qualified team to represent you. If you would like to interview us please call I'm sure we can help
0 votes Thank Flag Link Thu Sep 15, 2011
Bid Dar it is very unlikely you can complete a short sale without a professional. You can hire a short sale expert who gets paid only if your short sale closes and it costs you 0. They will complete your sales forms, your short sale package and negotiate on your behalf. Unless you are a lawyer, you really need an expert to help you.

http://www.trulia.com/blog/scott_godzyk/2011/08/the_basic_pr…

PLEASE SEE MY BLOG FOR A FULL LIST OF TIPS AND ADVICE HOW A SHORT SALE WORKS.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Sep 12, 2011
I know you are not happy with the site at this very moment, and it is what it is. But understand, this is not as cut and dry as you would like it to be. No one on this site can give you an answer to your question without knowing a lot more about your situation. Selling real estate under any circumstance can be very emotional. So when you are under pressure, it is even more difficult. I would not look to a realtor or a website for the answers to this question. I would find an attorney that has experience in short sales, The process of selling a home as a short sale has become very challenging, and every bank handles the process differently too. It is not a simple process, and there are several pitfall that you need to avoid.

So again, contact a real estate lawyer in your area to handle your transaction, and he or she will be able to provide you with the answer to your question.

Can anyone in Monterey County supply this fellow trulian with the name of a good attorney?

Best of luck
0 votes Thank Flag Link Sun Sep 11, 2011
The beauty of a short sale is that you can walk away from the property without a foreclosure on your record, It shows as "settled for less than owed". You can immediately start rebuilding your credit. You stay in the house until it closes, and in some cases, the lender will help you with moving expenses as long as the house is left in good condition. Understand that this situation is happening to good people like you all over the country. You need a licensed REALTOR to help you. You need to speak with an accountant about any tax consequences you may have...this may be the only catch...Most people do not understand their rights and options. New laws protect not only any lender from coming back for a deficiency judgement on the first, but now also on the second.
You need a good agent who understands short sales, how to negotiate with the bank..and will guide you every step of the way. If this is not what you have..find someone who you feel has your best interest at heart.
Web Reference: http://www.lesliedeluca.com
0 votes Thank Flag Link Sat Sep 10, 2011
Ask your agent and or attorney the question, as either party can better advise....Generally short sales don't cost the seller money; however, besides your lender(s), do any other liens exist...
0 votes Thank Flag Link Thu Sep 8, 2011
If you already have a Realtor she/he should be the one to answer your question because it will depend on what type of Short Sale you elect to do. There is a new Short Sale Program out there called HAFA (Home Affordable Foreclosure Alternative) and if you meet the criteria not only will it not cost you but you will be paid $3,000 at the close of escrow to help you with moving expenses of losing your home.

I just closed a HAFA Short Sale and if you qualify you should insist on getting one because not only will you be paid $3,000 but the bank waives the right to ever perform a deficiency judgment against you. That is the true value in a HAFA Short Sale. Also, they have to decide in 10 days or less so the process is quicker which means it will be less of a hit on your credit report.

I have been doing Short Sales for many years and only one client was asked to make a cash contribution. My experience has been that if a bank sees that you have cash in a saving account in the thousands range there is a chance you will get asked to pay a cash contribution. However, keep in mind that you can refuse and still be awarded the Short Sale, the amount can be negotiated down or at any time in the process you can change your mind and not go through with the Short Sale should the bank insist on a cash contribution. Also, the Realtor's or the buyer can contribute on your behalf with the permission of the Short Sale lender.

I hope I answered your question clearly?



Renee Venegas-Realtor
831-261-8448
0 votes Thank Flag Link Thu Sep 8, 2011
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