I am looking into Short Sale of my house. Will I be resposible for the realtor and attorney fees?

Asked by Jenraa, San Francisco, CA Tue Jul 27, 2010

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Ryan Smith, Agent, Murrieta, CA
Fri Jul 30, 2010
Hi Jenraa,

NO you will not be responsible for the realtor fees, attorney fees, or any other fees associated with short selling your home unless you agree to do so to help close the deal. Find a local short sale expert to help guild you through he process.

Hope that helps!

Chris Blasic
2 votes
Doc & Ellen…, Agent, San Antonio, TX
Tue Jul 27, 2010
Hi, Jenraa,

In a Short Sale, generally the Seller NETs nothing in the sale of the house. The lender agrees to accept an offer which generates less money than required to pay off the loan and all the selling expenses. They take a SHORT Payoff. Depending on your lender, some have agreed to the new HAFA guidlines, which allow you to get some cash out of the deal to cover your moving expenses. See: http://makinghomeaffordable.gov/hafa.html

Make sure that your agent is skilled and experienced at Short Sales. NEVER sign over your deed to someone who says they will "save" your house. Make sure that everything is disclosed. Also, make sure that you get a letter from the lender that states that they will not pursue a deficiency judgment against you for the balance.

Short Sales are paper intensive, time-consuming, and have many traps for the unwary. Make sure that your agent is a real pro.

Good luck,

1 vote
Jesse Madison, Agent, Rancho Santa Margarita, CA
Wed Nov 24, 2010
In a typical short sale you are not responsible for your realtors fees. Attorney fees may also be paid for by the bank but you it must be approved by the lender on the estimated HUD-1 you submit to the lender for approval. Ask you attorney and they will answer this question for you. Good Luck!
0 votes
Al Boada, Agent, Celebration, FL
Wed Nov 17, 2010
Usually the bank pays the commission and closing costs from whatever amount the home can be sold for. You will have to demonstarte your inability to afford paying the mortgage by asking for and submitting a 'hardship' package from the bank.

An attorney and tax accountant will give you more info about the legal and financial liabilities associated witha short sale.

Good luck!
0 votes
Brett Chappe…, Agent, Murrieta, CA
Wed Nov 17, 2010
A great resource is the HELP program. They are a local non-profit funded mainly by the county of riverside. Check their website for detailed answers to questions like this in the blog section. http://www.freehomeownershiphelp.org

Thank you,

Brett L. Chappell
Your Mortgage Professional
The Chappell Team at MWF Inc.
(951) 316-1315 phone
(888) 360-9418 eFax
NMLS License # 356537
DRE License # 01360291
Learn more about The Chappell Team on Facebook, Twitter, and Linkedin
0 votes
Sylvia Barry,…, Agent, Marin, CA
Sat Jul 31, 2010
Hi Jenraa:

Please make sure you find an experienced Realtor to represent you in your short sale.

Proper preparation of the short sale package is very important in getting the short sale approved with certain costs paid by your lenders so you will not have out of pocket expense and some lenders specifically state so in their short sale approvals.

Most fees related to the sale of your home are covered (and should be included before the negotiation take place) by the lender. They do need to be listed prior to starting negotiation with the lenders.

Attorney fee for consulting you on whether to do short sale, foreclosure, bankruptcy and their consequences are normally not covered by the lenders unless they are specifically related to the escrow.

I have been very successful in helping my clients with the short sale of their homes and I will be be very happy to work with you and guide you through the short sale of your home. Just email me or give me a call.

Sylvia Barry
(415) 717-0293
Web Reference:  http://www.SylviaBarryRE.com
0 votes
Ryan Smith, Agent, Murrieta, CA
Sat Jul 31, 2010
Hello Jenraa, I second what Chris said. You will NOT be responsible for any FEES unless you agree to pay them to help close the deal. Often times, lenders will not approve certain items/fees to be paid...however, an experienced agent/negotiator will be able to get the deal closed with little to no cash contribution from you.

If you'd a free book on short sales let me know or you can request one on my site: http://www.dontforeclose411.com

Be sure to watch some of my videos regarding the Short Sale process: http://www.theshortsaleminute.com

All the best!

Ryan Smith from Temecula, CA
0 votes
J, Agent, Greensboro, NC
Tue Jul 27, 2010
There is nothing "short" about a short sale option and I can't offer a short answer to your question. It is imperative that you locate a well-versed, experienced distressed property professional as soon as possible to know for sure if this option is right for you. In the 3 years I have been completing distressed property options for home owners through their banks, short sale options are only 1 solution among many.

Before you do anything, consult with a local professional who is licensed and credible in distressed property matters.

Good luck!
0 votes
Thomas Tolbe…, Agent, Savannah, GA
Tue Jul 27, 2010
Jenraa, Doc gave you an excellent and thorough answer. Good luck with your situation!
0 votes
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