Michelle, Home Buyer in Fort Lauderdale, FL

Are you aware of additional costs that may added by a short sale transaction?

Asked by Michelle, Fort Lauderdale, FL Sat Apr 5, 2008

We have contract for a short sale and are waiting on bank approval. The short sale addendum specifically provides a time frame for acceptance and for closing. Are there additional costs to the buyer associated with short sale transactions?

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Generally for the buyer - NO unless there are shortage of funds on the settlement statement and the buyer wants to pay it jus to close if it cannot be contributed by any other party
Web Reference: http://mypbchomes.com
0 votes Thank Flag Link Sat Dec 5, 2009
HI michelle, basically you have to wait until the bank accepts or counters your offer. Usually I have found that any counter has more to do with the seller accepting items then you as the buyer (terms that the bank will accept short, like a promisary note etc). Definetly do not plan on your specific times frames in contract, the banks are working as fast and as best that they can but on there own time lines!! good luck
Leanne Smith -agent
0 votes Thank Flag Link Sat Apr 5, 2008

Some Realtors will charge an additional fee simply for processing a Short Sale or if they use a service company to do the processing of the short sale transaction. However, these should have been disclosed to you up front if they would apply in your situation. I do not charge additional fees other than the standard commission that I would earn on a real estate transaction when it closes.

In addition, you may find that there may be some costs that you may need to pay for that are part of the negotiation process in order to get the sale closed as the Seller's Lender will want to net a particular amount. Also, sometimes if all costs were not on the initial preliminary settlement statement and they appear on the final settlement statement it would be difficult to get the Seller's Lender to go back and adjust their net amount as they do not want to receive any less. Therefore, when this situation would occur, these extra costs need to be paid by someone and typically the Seller doesn't have the money and will be looking for the Buyer to pay for the costs. This is okay, if there's room, if the Buyer is receiving a fabulous deal. Basically, these additional costs can be eliminated if the Realtors involved in the transaction are in the know when it comes to short sales. Hopefully, all your costs have been accounted for. Best wishes to you.
0 votes Thank Flag Link Sat Apr 5, 2008
It depends very much on the offer and what the bank comes back with. As far as for the dates, toss them out the window.
In a Short Sale transaction the standard rules does not work. Any offer is always depending on the bank's approval and the terms they want to accept, but depending on your offer, you should always be able to get out.
if you have further questions, check out my Short Sale website: http://www.flrps.net it should help you with some questions you might have.
Web Reference: http://www.KierHomes.com
0 votes Thank Flag Link Sat Apr 5, 2008
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