See full version: Who Pays Closing Costs in a Short Sale
When real property is sold for less than what's owed on it, a "short sale" occurs. Real estate short sales sometimes generate questions about just who's paying what in closing costs. Typically, in real estate short sales there are three parties to the sale; the seller, the buyer and the seller's lender. Mortgage lenders must approve the short sales of their borrowers, and while they will pay sellers' closing costs, they might hesitate to pay any buyers' closing costs.
When a short sale seller's mortgage lender accepts a buyer's purchase offer it usually issues a letter of acceptance. These letters of acceptance normally state how much in buyer closing costs the lender will pay, if any. Frequently, though, lender short sale acceptance letters don't detail just which buyer closing costs the lender will pay. Lenders in short sales have been known to refuse to pay a previously agreed-to buyer closing cost almost up to just before a sale closes.
Mortgage lenders in short sales can accept, reject or counteroffer buyers' purchase offers. Lenders in short sales may also pay some buyers' closing costs or none at all, or even all of them. Whether a mortgage lender in a short sale pays for any buyer closing costs depends completely on its bottom-line financial decision about that sale. Lastly, lenders in short sales might agree to pay a buyer's closing costs but may pick and choose exactly which costs they'll pay.
In either case, the seller should carry coverage for their own personal belongings and automobiles. [links]
The amount of rent the seller pays is negotiable. Sometimes sellers actually ask to stay in the home for a few days rent-free. It's still wise to execute an agreement that addresses liability issues and term if you agree to this. [links]
You have some logical reasons for not wanting to do a rent-back but take a deep breath and consider that it might be to your advantage. Date of possession is often a pivotal factor when you make an offer on a property. Put yourself in the seller's shoes.
There are several problems with this, however. The seller no longer owns the home, so the seller's insurance company might refuse to pay any potential claims. And the buyer typically already has insurance coverage because lenders insist that the buyer's insurance policy be in force at closing. [links]
Sometimes buyers will insist that sellers maintain their existing homeowner's insurance policies during the rent-back period. Insurance companies aren't typically happy to keep coverage in effect but many will continue the policy upon request. [links]
Some states make "Seller in Possession" (SIP) forms available for these situations. The forms address seller rent-backs as well as other contract terms. This addendum can modify the purchase contract when the appropriate box is checked. here
A buyer must cover short sale repairs if the terms of the contract or short sale approval state that the seller and lender do not pay for repairs, other than those required by law, such as smoke detectors, carbon monoxide detectors and water heaters. A buyer or his lender determine if repairs must be made. The buyer pays for a home inspection to find out if the property has defects and the lender orders an appraisal report to ensure the home's value and expose any serious defects. The lender typically requires repair if the items affect the home's structural soundness or pose a health and safety risk to occupants, such as termite damage, broken windows and electrical and plumbing problems.
Approval letters state what the parties to a transaction must do for the lender to release the loan's lien from the property title. The lender generally requires all parties, including buyer, seller and real estate agents, to sign an affidavit stating that no money will be given to a party without disclosing it to the lender. No party can benefit financially from the short sale aside from the money dispersed through escrow and approved by the lender, such as agent commissions and buyer closing cost concessions. The affidavit prevents the seller from giving money to the buyer on the side to make repairs. A financially distressed seller generally protects himself from having to pay for costly repairs by stating in the contract that the home is sold in its current condition. more
Short sales surpassed foreclosure sales in 2012, as lenders' increasingly seek to cut losses before proceeding with the costly foreclosure process. Short sales have advantages, including a below-market sales price, but a buyer involved in a short sale transaction may also lose money or lose the entire transaction if the home needs repairs. The prevalance of short sale deals requires buyers to anticipate paying repair costs because lenders and seller typically do not pay them. more
A short sale is a type of distress sale that involves a seller who is underwater on his home loan, owing more to the lender than the house is worth. To make the deal happen, the seller must demonstrate financial hardship through extensive documentation and a lengthy approval process with the lender. The seller markets his home and asks the seller to forgive the difference between the offer price and the loan balance. The buyer whose offer is accepted by the lender must meet the conditions the lender outlines in its short sale approval.
Nearly every home has defects that require repair. Short sales are more likely to require repairs than a new construction or a traditional sale because the seller is usually struggling financially. As such, he is more likely to let the house fall into disrepair and defer maintenance. The buyer may wait to make repairs after the close of escrow if his lender does not require the repairs as a condition for obtaining financing. A buyer may risk losing his investment if he pays for repair work before the close of escrow, as a number of things can go wrong in a transaction which cause it to fall through.
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The exciting thing about Analog is that they also do a print copy of the magazine. Most of the magazines featured here are digital only, but it can be really rewarding to see your work in a printed magazine. more
The lead-time for publications like this tends to be quite long, especially when they are only releasing content 4 times a year.
Writing flash fiction can be a good direction to go in as the earnings per word usually work out favorably. [links]
If you need to make money from writing fast, have you considered freelance writing for blogs?