Items Your Mortgage Lender Will Pay

The lender(s) will usually pay for the following costs associated with the mortgage short sale process:

  • Escrow fee (homeowner’s half)
  • Owner’s title policy
  • Recording fee’s
  • Short sale reconveyance fee
  • Overnight mailing fee for the payoff
  • Real estate property taxes and prorations
  • Real estate commissions
  • HOA dues and fee’s

If the HOA has placed a lien on the property, some mortgage lenders may allow $1,000 to be paid towards this lien to complete the short sale. We will negotiate with the HOA to reduce their fee’s and accept this money as payment in full. We will help remind the HOA they will receive nothing if this home goes to the foreclosure process and is sold at the trustee’s sale! The short sale process will help them!

Mortgage lender will NOT pay for the following short sale costs (see NOTE below the list):

  • “buyer” closing and mortgage costs
  • home warranty
  • buyer’s appraisal
  • buyer’s inspection
  • any repairs to the short sale

NOTE: as of 2008 short sale process rules have changed. How? Mortgage lenders are now generally willing to help pay for the first two items on this list. Mortgage lenders are now more willing to negotiate details regarding a short sale. The bottom line is: if the mortgage lender wants the property off their books they will negotiate the short sale! Ask us how any recent changes can help the short sale process.

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