I’d like to list those things for you before you do into a short sale transaction of what those things may be.
The first thing is, if you have a homeowners association, one of the things I always recommend my clients that they do stay current on those fees because many times to the short sales process a bank will not pay for past due fees. Some people could look at that as a cost of doing a short sale. While they’re going through the process they would have to stay current and continuously make those HOA payments until the property is sold.
The second thing the sellers have to be considerate of is the fact that they are required to provide certain things within the property in order for it to be sold. Things like smoke detectors, water heater bracing and the new one which is carbon monoxide detectors. Now if you already have these items then great there isn’t a problem, but if you don’t, these are the things that could be little expenses along the way that you’d have to go out and buy and put in the property.
Another item sellers may have to pay for is if for any reason their utilities are turned off. We may need you have the utilities turned on in order for the buyer to do their appraisal and their inspection in a while for the short sale to occur or simply keep on the utilizes if you’re not living on the property throughout the process which could be looked at as an expense. But if you aren’t living there, obviously the fees aren’t going to be that tremendous. But it is something that does need to occur in a short sale and maybe an additional cost.
Every now and then but it’s very rare with my clients there may be certain circumstances where a seller may have to come to the table with money to appease a short sale lender and this is more prominent when you do have tow loans on the property and one of them is a loan that you pulled money out of the property through the process of owning it. But these are very rare they are very case specific and that’s something that we can talk about when we assess your situation.
It’s important to understand that you’re not going to pay for any real estate commissions to the short sale. Typically you’re not really paying any normal cost associated with the sale of a property such as title, escrow and closing costs etc. But I did want to address those little things that may come up through the process that you want to be aware of, things that you might have to pay for.
Thank You very much for watching my presentation of Little Things You Might Have to Pay For in a Short Sale