Homeowner or the lender.
2007-12-20 22:50:14 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The current owner of the house will pay the Realtor. If you sell the house before the leader forecloses, you'll pay the Realtor. If the leader forecloses, the leader will pay.
A short sale, in real estate, is when you sell the house for less than what you owe on it. Thus, you are "short" the difference. The lender, in this market, might forgive the difference and not come after you for it just to get it off its books.
2007-12-21 00:13:45 · answer #1 · answered by Thinker 7 · 1⤊ 0⤋
Really, the lender will be the one who agrees to pay the Realtor. You will contract the Realtor to sell the home at a specific fee (sometimes a percentage of sale, other times a flat fee).
The Realtor had better contact the lender at that time and confirm the amount owed versus the amount the home is worth. If the home is worth less than what is owed, it's time for the Realtor to get a signed agreement as to what the Lender will agree pay the Realtor, as this fee will reduce the amount the Lender will get paid off.
A lot of Lenders will agree to let the Realtors get paid since most of the time it will save them the money they'd have to spend in order to foreclose and then sell the home.
Remember, Lenders are not in the Real Estate business, they're in the lending business. Foreclosing on homes is expensive and time consuming for them, and it doesn't add to their bottom line, therefore they would prefer not to do it.
2007-12-21 01:01:56 · answer #2 · answered by trblmkr30 4 · 0⤊ 0⤋
When a proposed short sale is submitted to the lender for possible approval, they will ask for a HUD 1 that will list all of the potential charges that will be there at closing. On that form will be a tentative real estate fee based upon the proposed sale price. All of those potential fees will be considered by the lender to arrive at a net figure they will get upon completion of the "short sale." In short sales the sellers are not allowed to receive any funds.
2007-12-21 01:20:18 · answer #3 · answered by tampabaycreditdoctor 3 · 0⤊ 0⤋
The actual commission is paid by the seller of the property, with the approval of the lender involved. Thus, if you agree to sell a property with a loan of $150K for a loss of $10K, at $140,000, the seller's net proceeds to the lender will be $140K less the commission amount. That is $131,600 net, assuming a commission rate of 6%.
If the lender issues a 1099 Form for the shortage, it will reflect the amount of $18,400, which is the $10K shortfall plus the real estate fee.
2007-12-21 00:52:36 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
Whoever hired the realtor and signed the contract for paying the commission.
A short sale means that the seller borrowed somebody's house, sold it, and is hoping to buy it back at a lower price and then return it to the original owner. It seems unrealistic that such a transaction could take place. Maybe you should explain what you mean by a short sale in a real estate transaction.
2007-12-20 22:57:01 · answer #5 · answered by Anonymous · 0⤊ 1⤋
I do short sales for a living. Do you need help. We don't involve realtors. They just F@@k everything up. In my opinion they are the biggest waste of time. More then half of them don't know anything. Where is the house located?
2007-12-21 15:21:59 · answer #6 · answered by Anonymous · 0⤊ 2⤋
Could be either one depending on the equity in the property.
2007-12-21 00:22:25 · answer #7 · answered by Alterfemego 7 · 0⤊ 1⤋