Wednesday, April 27, 2011

Short Sale Issue of Costs to be Paid at Closing

Short sales 
Short sale buyers should know or get information about the possibility that seller's lender/lienholder might not agree to pay for all costs at closing.
 
Some of these costs at short sale closing might otherwise be the seller obligation (like title insurance, HOA dues, and escrow fees).  But sellers in short sales usually won't have money or assets to pay these costs.
 
What will be the incidental costs at short sale closing?   And who must pay those? Incidental costs at closing

The seller's lender/lienholder sometimes won't agree to pay much of the outstanding incidental costs at short sale closing (like title insurance, survey fees, unpaid property taxes, utility bills, and outstanding HOA dues). 

The short sale listing broker/agent and the buyer's agent won't have the legal, contract or ethical obligation to pay these costs.

listing brokers The purchase agreement itself (RPA-CA used in California) in a short sale will not necessarily spell out who is to pay for what costs at closing.
 
Buyers should know that the cost payment obligation in a short sale will be part of negotiations between lender/lienholders and sellers and buyers prior to sale completion and that each cost must be clearly set forth on the HUD1 closing statement.  short sale tips

Buyers might be asked and expected to pay for some of the costs of closing a short sale in California.

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Harrison K. Long - solutions for real estate and business - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - ExploreProperties@gmail.com (email) - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs® - also now serving as director at California Association of REALTORs®.

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Contact us with your questions about real estate, listing and selling of homes and properties at Orange County, California.  

Posted via email from Explore OC Homes

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