Fees for short sale?

Asked by Rsmith, Chandler, AZ Tue Aug 19, 2008

Yesterday I asked the difference between short sale and walking away/forclosure ....does anyone know what are the fees involved for shortsale? I am trying to decide the pros and cons of both-circumstances. I know I can get a house in 1-3 years with short sale, but 5-7 foreclosure. Thanks again!

Help the community by answering this question:

+ web reference
Web reference:

Answers

9
Tonje Kearney, Agent, Scottsdale, AZ
Tue Aug 19, 2008
I totally understand Rsmith, however an agent is not a lawyer nor a CPA, and the outcome of each individuals situation is different depending on many issues such as the type of loan that you have and what your lender is willing to grant you. A shortsale or foreclosure may ease your burden at this time, however if you do not do things right you may very well end up in a much worse situation. Such as shortselling your home ut ending up with the deficiency to pay for many years to come. No agent will tell you exactly what can happen to you, simply because they can't, the issues you are facing are fit for a lawyer and CPA. We may be able to advice you in the right direction, but we can not give you a straight up answer to what you should do. There are free legal advice available, how about starting there. Usually the legal advice will give you an insight into the tax issues and a quick consultation thereafter with a CPA does not need to cost much.
Web Reference:  http://www.TeamKearney.com
1 vote
Scott Godzyk, Agent, Manchester, NH
Tue Aug 19, 2008
You want to make sure the agent includes them in the net sheet , that is teh amount you will get (the price) less all the expenses such as commission, deed preperation, state taxes/transfer taxes, any back property taxes, hoa fees, water bill, recording fees, title company costs etc. You wont have to pay anything if it is done correctly. Dont leave anything off the net sheet as then it will be your responsibility.
Web Reference:  http://www.ScottSellsNH.com
1 vote
John, Home Seller, Phoenix, AZ
Wed Feb 25, 2009
We used a company in Tucson to handle our short sale processing. They handled the entire negotiation of our short sale and worked both the buyer and us. I spoke to three RE agents and none of them knew nearly as much about the negotiation of a lender approved short sale. There fees were very reasonable, with some upfront and most of it paid if the sale closed. The buyer agreed to pay the upfront, so there was no out of pocket expenses for us.

This home was an investment gone bad for my family and was on the market for 7 months before we lowered our list price at their suggestion. Right after we lowered the prices, we had multiple offers and took the most qualified. After only 2 months of negotiation, we were able to close and save us from certain foreclosure.

They were able to help facillitate a fair deal for all parties through our agent. They were honest, communicated very well and followed through with great success! Highly Recommended..
0 votes
Eric Crane, Agent, Mesa, AZ
Wed Aug 20, 2008
In general, if the short sale is structured correctly, the homeowner should not incur any fees at closing. At times, the bank will try to insist that they must contribute to the cause, if they want the short sale approved. This is why I use a professional short sale consultant to submit an offer to the bank which includes all costs (commissions, title insurance, escrow fee, etc.) -- the total net proceeds are what is being offered for settlement.

Sometimes the bank will not pay for certain fees (i.e. recording fee, HOA costs) but we try to get them to handle this as well.

I strongly recommend that if it comes time to try to handle your transaction as a short sale, that you seek out an agent who has a lot of short sale experience or one who uses a professional short sale consultant.
Regards, Eric
Web Reference:  http://www.JustAskEric.com
0 votes
Rsmith, Home Buyer, Chandler, AZ
Tue Aug 19, 2008
Now this sounds silly coming from someone who does not know too much about real estate....but how does one go about having a CPA, Tax consultant, attorney...if I don't even have the funds to outright sell my house (I am upside down) LOL!!! And of course trying to find an angel of an agent who would even want to sell a shortsale? I do thank you for all of your advice!!
0 votes
Stephanie And…, , Northfield, NJ
Tue Aug 19, 2008
Whatever you do, you really should consult a tax professional in your state to find out what the state's laws are regarding what you will have to pay taxes on. I suggest contacting an attorney as well so that you can get advice as far as the other laws. I do know that if you are going to go with the short sale route, you may be responsible for the deficiency. Just because the bank agrees to accept a short sale does not mean that you will not be responsible for the deficiency later. So make sure you consult an attorney and a tax professional to see what will be best for you. Good luck!
0 votes
Tonje Kearney, Agent, Scottsdale, AZ
Tue Aug 19, 2008
That depends on what agreement you come to with the lender on the short sale and also what type of loan you are in. You may end up having to pay taxes on the deficiency and you may also be liable to pay the difference of the note. I would advice you to talk to a real estate attorney as well as your CPA on these matters. The above is true whether you end up doing a short sale or a foreclosure.
Web Reference:  http://www.TeamKearney.com
0 votes
Rsmith, Home Buyer, Chandler, AZ
Tue Aug 19, 2008
I have heard that I might have to pay taxes after the houses sales on a short sale? Someone told me it could be like $10,000!!! Is this true? Again thank you for your help!
0 votes
Tonje Kearney, Agent, Scottsdale, AZ
Tue Aug 19, 2008
There should be no difference in costs to you, in both circumstances the bank will take care of all fees. The only fee you may have to pay is a retainer fee to your listing agent, some agents charge a nominal fee up front to cover their expenses involved. Usually this is a low amount of a couple of hundred dollars. Short sale is definitely a better scenario than a foreclosure.
Web Reference:  http://www.TeamKearney.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more