How to avoid paying money at closing

By
Real Estate Agent

Short sales are frustrating sometimes. If you miss any costs, you often end up paying for them. The most common missed costs are property taxes, Homeowner's Association Fees, and judgments or liens.

What happens when you get to closing and there is an extra 2K that has to be paid? Does the seller want to pay it? No. What about the buyer? No again. So who ends up paying for it? Their agent does. You don't want to spend another month re-negotiating the short sale.

Here are 3 things you need to do to avoid having to give up commission at your next closing.

1. Get updated payoffs on everything when you start the short sale. The title company needs to do a title search. Have them obtain payoffs on the Homeowner's Association.

2. Prorate everything 5-6 months in the future. It can take longer to get the short sale approved. You may have to negotiate 2-3 buyer's offers with the lender. Costs can go up very fast.

3. Update the new costs regularly as the short sale progresses.

I hope this helps you out. We have been stuck paying for certain items 2-3 times. After it happens once, you make sure it doesn't happen again.

Are you looking for a marketing system to list more short sales? We have developed a system to farm and convert the Pre-Foreclosure Leads and the Expired Short Sales. It enables us to list a consistent number of short sales each month. Now we are offering it to other agents. Get more info at: http://www.AgentLeadExplosion.com .

If you're running into problems with short sale files, then you probably need to look into the How to Escalate a File Course. Get more info at http://www.HowToEscalateAFile.com .

You can get a copy of all the fax numbers for congress and a fax template to send to them here: http://shortsaleagentadvocate.com .

Got questions about short sales? Just ask.

Ben Curry & Chris Curry - Keller Williams Real Estate, Gainesville Florida.

http://www.CurryTeamHomes.com

We specialize in short sales in Gainesville Florida. Gainesville Florida short sale, Gainesville fl short sale, Gainesville Florida short sales, Gainesville short sale

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Rainmaker
1,282,998
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Thanks for posting. Goo advise.   We learn a lot from Active Rain blogs. Best Regards,

May 06, 2010 04:16 AM #1
Rainmaker
184,491
Kevin Vitali
EXIT Realty- Massachusetts Short Sales & Residential Sales - Tewksbury, MA
Helping Massachusetts Home Buyers and Home Sellers

Oh more than once I have had to dip into my commision to help pull a short sale together.  I think its also important to note most banks with a short sale will not pay for municipal water and sewer unless it has been liened.

May 06, 2010 08:36 AM #2
Rainer
152,569
Gail Smith
Leesburg, FL

Paying for municipal water and sewer doesn't affect clear title or the new borrower. i've had regular sales where the homeowner skipped out on a huge bill. Like you said. unless it has been liened, the worse that can happen is it affects the credit of the person skipping. My problem has always been refridgerators. Sellers saying they are leaving all appliances and then it not being there at closing. Now I put in the listing that NO appliances are being left and encourage the homeowner to leave it all. Most leave some and some leave all.

May 08, 2010 01:00 AM #3
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Rainer
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Ben Curry

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