Short Sale Fees

I’m not sure I understand your question – are you the seller or the buyer?

The SELLING lender, the one giving permission to short-sell and take a loss on what they are owed, is going to arrive at a net profit that is agreeable to them. This is their “bottom line” – the amount that they will take to consider the lien settled, even if it is less than they are owed. The difference between that amount, and the sale price, is the money left over to pay everything else – the taxes, the outstanding municipal liens, tax stamps, any concessions contracted to the buyer, etc.

If there is not enough money to do that, the seller either brings the money to the table, or has the buyer pay out of pocket, or does not sell the home.

The MORTGAGE LENDER– that is, the money for the buyer – is agreeing to lend based upon the sale price and appraisal of the property. But, if there were contracted concessions from the seller that were disallowed or not covered by the short-selling lender’s bottom lione, then the buyer’s only choice is to walk away, demand these items from the seller, or to pay these items themselves.

The only way to generate more money out of the transaction would be to take the short-selling lender’s bottom line, and increase the price of the home until everyone is covered. If the market or appraisal do not support this increase, then the home cannot be sold without someone else chipping into the pot.

Ask your question again if I am misreading it … and speak to the brokers on both sides to see what the difference is between the selling lender’s bottom line, and the contracted sale price of the home.