Who pays the real estate commission on a short sale?

By
Real Estate Broker/Owner with Regal Realty of the Treasure Coast LLC
https://activerain.com/droplet/475l

Who pays the real estate commission on a short sale?

Often when a homeowner enters into a short sale decision because they have used up all their financial resources.  They do not want to have their home foreclosed on because of the long term damage to their credit. 

The home owner then decides to explore a short sale, but if they list their house for sale,  who pays to real estate commission on a short sale deal?  There is no equity in their home, and no cash in the bank?

The first mortgage lien holder is the one who actually pays the real estate commission. How?

The first mortgage holder has priority over all lien holders except unpaid property taxes.  The mortgage holder agrees to allow the real estate commission to be paid from their gross proceeds.  Therefore even though the seller and the listing agent agree on a commission fee,  it is ultimately the first mortgage holder who actually allows the commission to be paid on a short sale.

The amount of comission to be paid is unually written in the letter of short sale approval and is a term of the short sale approval. 

 

Check out  my other blogs 

What is a short sale?

Can you short sale a house without approval of the 2nd mortgage?

 

Posted by

 

 

I am  certified from the National Association of Realtors for being a Short Sale and Foreclosure Expert. 

If your are looking to sell or purchase a home in South Florida CLICK HERE to contact me to assist you with your real estate needs.

 

                              

  

Merline Pennant

Realtor/Broker

Direct Line: (772) 985-7653

email: Merline@RegalRealtyTC.com

Website: RegalRealtyTC.com

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Will Nesbitt 11/19/2013 05:27 AM
Topic:
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Rainmaker
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
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Merline

Thanks for sharing the information on who pays the commission on a short sale.

Good luck and success.

Lou Ludwig

Nov 19, 2013 05:45 AM #1
Rainer
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Merline D Pennant - New homes, Short Sales and Pre-foreclosures
Regal Realty of the Treasure Coast LLC - Port St Lucie, FL
New City, New Towns, New homes

Thanks Lou.

Nov 19, 2013 05:58 AM #2
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Rainer
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Merline D Pennant - New homes, Short Sales and Pre-foreclosures

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