Will a Short Sale Cost Me Money?


A homeowner won’t have to pay any fees in connection with a short sale.
All of the fees in the transaction are paid from the proceeds.
So for example, suppose you’re selling the home for $300,000 and you owe the bank $320,000 and the other fees in the transaction like the broker and the legal fees are another $20,000. What’s going to happen is we’re going to submit the entire package to the bank, show the financial hardship, or the borrower’s inability to pay, and get the bank to approve; reducing the amount they’re owed in order for all of the vendors in the transaction to be paid from the proceeds without the homeowner having to put any money into the transaction.