Explore Properties at Southern California: Short Sale Issue of Costs to be Paid at Closing

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.

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