As part of a short sale, the bank will most likely cover most of the closing cost on the homeowner's behalf. This even includes the agent's commission. Most banks will offer the agents 5% to split, but some such as Bank of America only offer 4%. If the loan is FHA backed the bank won't pay for a home warranty if requested by the buyer, delinquent HOA fees or HOA transfer fees. In some cases a seller incentive offered by HUD can be used to cover these cost, but only if backed by FHA. The incentive is not available on conventional and VA loans. The bank will typically cover any delinquent taxes as long as proceeds from the sale are sufficient to cover them. In a FHA short sale the bank will under no circumstances cover closing cost for the buyer. In a conventional or VA short sale the bank will sometimes cover the buyer's closing cost as long as the appraisal comes in high enough and the sales price is high enough to net the bank the amount required in the sale of the home. Regardless of the lender under no circumstances will they allow the seller to contribute any money on behalf of the buyer. If you have a question on short sales or are in need of selling your home please contact me and I can help you.

You can either visit my Naples Florida Short Sales website by clicking the link or fill out the form at the bottom of this page. If I am not personally able to handle your short sale due to location I will put you in touch with a qualified short sale expert in your area.

Naples Florida Short Sales Expert,

Benjamin Sovacool

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Article's Author

Benjamin Sovacool
Taylor Donovan Realty, Inc.
Naples, FL

Contact Benjamin Sovacool