Jacksonville Florida Short Sales FAQ: How will my closing costs get paid if I’m doing a Short Sale?
This is a great question that many sellers in Jacksonville ask me. Typically in a normal sale, the sale price of the home covers all the seller’s closing costs. In a short sale, that is not the case, due to the sale price being less, than the mortgage balance. There are also situations where the seller has money to bring to closing to cover the deficiency and then it would not be a short sale and would close like a normal sale.
In a short sale, when an offer comes in, the listing agent submits a preliminary HUD (also known as a settlement statement) to the seller’s lender. The HUD shows the bank what the closing costs are going to be, based on the offer price and customary settlement costs. The HUD also shows the bank what the net proceeds will be at the close of escrow. If the bank agrees to the short sale and to the HUD, they cover the cost of the seller’s closing costs. However, that does make the deficiency amount higher, so when you are figuring how much you are going to be short, the closing costs need to be taken in consideration as well. Sometimes, the lender may ask you to participate in the loss, by requiring cash at closing or a promissory note.
I am not an attorney or tax expert, you should seek legal or tax advice from an attorney and CPA.
Got questions? Are you in a short sale and/or pre-foreclosure situation with your Jacksonville Home? Call me at 904-910-3516 or send me an email at pam@pamgraham.com.
Coming soon, more Jacksonville Florida Short Sales FAQ:
How long will a short sale take?
Will the bank come after me for the difference?
How will a short sale affect my credit?
I have no money, will I have to bring money to closing?
How will the closing costs get paid?
How long does it take for the bank to foreclose on my home?
What are the tax ramifications doing a short sale?
How does the bank determine how much they will accept?
Can a family member buy my home, then let me stay and rent it from them?
How do I hire the best real estate agent to get my short sale done?
