How Much Will It Cost Me to Short Sale My Home?

Costa Mesa Short Sale FAQs

You’re probably looking for a clear cut answer to this.  However, the answer is “it depends”.

It depends upon a variety of things like:  Do you need termite repairs?  Are you behind on your HOAs?  Do you have more than one loan on your property?

Although there are many variations, this post will discuss a few of the more common scenarios.

Usually, the bank will allow a large majority of the closing costs for a Costa Mesa short sale to be paid from the purchase price.  The bank looks at the “net” it will receive after all costs are paid.  So although, the costs are said to be the sellers’ costs, they actually come from the purchase price usually and not out of the sellers’ pocket, and you can also get great insurance for your home from sites like https://www.eriemutual.com/insights/welland-home-insurance/.

What does the bank allow to be paid?

The Following are Usually Allowed by the Short Sale Lender

• Real estate agents’ commissions
• Seller’s title insurance
• Seller’s escrow fee – though they often limit the amount
• Termite inspection, though often not repairs
• Past due real estate taxes – as long as they are not too old
• A small amount to the second mortgage

Items Sometimes Paid by the Short Sale Lender

• Termite repairs
• Past due HOA – Homeowners’ Association – Dues
• Home Warranty for the new buyer
• Buyers’ closing costs

So, when might a seller have to pay some of the costs of a short sale?

• • The short sale lender may not be willing to pay as much to the second lender as the second wants, and someone needs to pay it.  Under current California laws, often the lender cannot ask for a contribution, but they can refuse to approve.  If more is needed for the second, and it can’t be negotiated down further, and the seller has no money, sometimes the buyer can make a contribution.
  • Past due HOA dues – sometimes the amount can be negotiated with the HOA, and the buyer or seller can pay or share these if the short sale lender will not pay them.
  • Repairs sometimes need to be done before the new buyer’s lender will allow the loan to fund.  These may include termite or other items.  If the short sale lender will not allow them, either the buyer or seller will need to pay to have these done prior to close of escrow.

We have completed a large percentage of short sales where the sellers paid no money to close the short sale.

If you are facing foreclosure, please contact me today at 714-319-9751 for your free, confidential consultation to discuss if a Costa Mesa short sale is your best option.