Top Question Asked When Buying A Short Sale, Who Pays For Closing Costs?

Buyers and sellers want to know who pays the closing costs in a short sale? As a buyer you want to ask your agent this question before you write an offer. The best time to ask it is during your first meeting. In a short sale all terms, conditions and closing costs are subject to lender approval. Sounds pretty vague, right?
Let me tell you what closing costs you should ask for when writing a contract. Then I will tell you what they actually pay.

Buyer should ask the Seller to pay:

  • Sellers escrow fees
  • Sellers title insurance
  • Property taxes-including any back taxes
  • County taxes
  • City Required Reports
  • Retrofitting
  • Natural Hazard Disclosure
  • Termite Report & Repairs
  • Home Warranty
  • HOA transfer fee
  • HOA documents
  • HOA back dues if any

Here is what the seller’s lender typically approves to pay:

  • Sellers escrow fees
  • Sellers title insurance
  • Property taxes-including any back taxes
  • County taxes
  • Natural Hazard Disclosure (Sometimes)
  • Termite Report & Repairs (Credits)
  • HOA back dues if any (Sometimes)

Each lender is different and has their own policies on what they are approved to pay. That’s why it’s a good idea to ask for these closing costs to be paid. Keep in mind that short sales are a great opportunity to get a discount on a property. Chances are some of the closing costs will not be paid. So be prepared when you receive the lender approval for your offer, all the fees might not be covered by the Seller and their lender.
For more information on selling or buying short sales, contact Kristine with Prudential CA Realty, Santa Monica -Short Sale Specialist,  310-737-8173.

How Can a California Short Sale Specialist Help Troubled Homeowners?

How Can a California Short Sale Specialist Help Troubled Homeowners?

Even with moving assistance and financial aid packages starting to pour in from banks, there are still hundreds or even thousands of homeowners who won’t qualify for such help and are thus in dire need of the services of a Santa Monica short sale specialist. Some time ago, the courts have ordered a number of banking corporations to offer additional financial aid – or even return deeds to previously foreclosed homes – to homeowners who have been wrongfully evicted from their properties.

If, however, you are only in the brink of foreclosure then such financial aid packages are not yours to enjoy. There is still a good chance that your bank or creditor would seize your property and foreclose it if you don’t take proper precautionary measures ahead of time. One such measure would be to approach a California short sale specialist and get him or her to help you.
Are Short Sales the Ultimate Solution?
Unfortunately, not all homeowners would be considered eligible for short sales. The conditions vary from one creditor to another. Ultimately, however, you or – more specifically – your Santa Monica short sale specialist would have to prove that it’s to everyone’s benefit that you are allowed to short sell your home as soon as possible.
What Do Short Sales Entail?
Let’s say that your house in Santa Monica may be sold today at $1,000,000. Unfortunately, your home used to be worth $1,20,000 and in fact you have mortgaged it to the hilt and thus owe the bank $1,200,000. Obviously, it would be pretty impossible for you to sell your home at its original price. But if you sell your home based on its current market value, then that would mean losing about $200,000 in the process.

  • $1,200,000 Original value of your home or the amount of your mortgage balance
  • $1,000,000 Present market value of your home
  • $200,000 Negative balance if you sell your home at its present market value

This won’t be that big a problem if you fully own your property and it’s not encumbered in any way. Although you are losing $200,000 technically, it’s not something that would significantly hurt your finances.
But it’s different if you owe $1,200,000 on your home and are no longer able to keep up with mortgage payments. To prevent foreclosure and an unwanted blemish on your credit record, you would need to sell the home. But even if you do sell it, you would still be left with a $200,000 debt you can’t pay.
Now, this is the part where a Santa Monica short sale specialist can step in and help you out.
A short sale specialist would do the following to ease your burden:

Prepare a short sale package to convince your creditor about the rightness of short selling your home
Find a buyer for your short sale home
Obtain the best possible post-short-sale condition for the remaining $200,000 balance of your mortgage
Expedite the process for selling your home to prevent foreclosure

Fore more information contact Kristine Halverson of Prudential CA Realty, at 310-737-8173

Mar Vista Mountain View Home

First time on the market in nearly 30 years. Street-to-Street Lot on a Hilltop with Mountain Views. Pride of Ownership: New roof and exterior paint in 2008. Fantastic opportunity to expand, split, or to simply enjoy this home way it is. Great location: walk to Windward School, Mar Vista Library, Mar Vista Park and Farmer’s Market.

We're sorry, but we couldn't find MLS # 11564557 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

To see this home and/or more information about homes, contact Kim at 310-737-8173