Who Pays all the Fees Associated with a Short Sale?

A common question asked by home owners is who pays all the fees associated with a short sale?  This is a valid question, most home owners are thinking of the REALTOR commission or real estate commission when asking the question this question.  Along with the real estate commission there are a number of other fees that need to be covered.

The short answer is the bank will pay all the fess associated with a short sale for the seller.

When doing a short sale there will be many fees associated with it.  The fess can include the following:

  • Real estate commission – up to 6% of the purchase price
  • Short Sale Negotiation/ Legal- up to 2% of the purchase price
  • Tax stamps- Massachusetts tax stamps on the sale of a home are .456% of the purchase price.
  • Typical closing costs for the sellers, including deed, recording, courier fess etc…

A short sale that closes for $300,000 may have fees in the range of $20,000 to $30,000.  These fees should be covered by the bank.  All banks have slightly different policies about what they will or will not pay.  Generally my short sale clients pay nothing at the closing table.

Are there fees associated with a short sale that I will have to pay?

There are a few items that are hard to get the bank to pay. These fees include:

  • Water and sewer
  • HOA fees

If at all possible stay current on your condo fees and water and sewer bills.  While not impossible, it is difficult to get the banks to pay these fees.  It is terrible to get a short sale negotiated with the best terms for the client to have it hung up over a $1000.00 of back condo fees or water and sewer bills.  If you are living in the home and not paying your mortgage, try and keep current on your water and sewer and your HOA fees.  Sometimes, you just can’t pay and that is something we deal with in the negotiations.

Talk with your Short Sale REALTOR and discuss a strategy that suits your needs.  Every bank and every situation is different a short sale has to be looked at holistically.


This article, Who Pays the Fees Associated with a Short Sale, was provided by Kevin Vitali of EXIT Group One Real Estate.  If you have any questions regarding your options to foreclosure or a short sale call Kevin at 978-360-0422.

Massachusetts Short Sale REALTOR providing services in Essex County, including  Amesbury, Andover, Beverly, Boxford, Bradford, Essex, Georgetown, Gloucester, Groveland, Hamilton, Haverhill, Ipswich, Lawrence, Lynn, Lynnfield, Manchester-by-the-Sea, ,Marblehead ,Merrimac, Methuen, Middleton, Nahant, Newbury, Newburyport, North Andover, Peabody, Rockport, Rowley, Salem, Salisbury, Saugus, Swampscott, Topsfield, Wenham, West Newbury

Massachusetts Short Sale REALTOR providing services in Middlesex County, including Acton, Arlington, Ayer, Bedford, Billerica, Boxborough, Burlington, Carlisle, Chelmsford, Concord, Dracut, Groton, Lexington, Lincoln, Littleton, Lowell, Malden, Medford, Melrose, North Reading, Reading, Stoneham, Stow, Sudbury, Tewksbury, Tyngsborough, Wakefield, Westford, Wilmington, Winchester, Woburn

If you have a short sale anywhere in Massachusetts or the country I will be happy to find you a capable short sale agent to help you with your needs.  Just give me a call.

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