Bank of America short sale (foreclose, new agent, commissions, mortgage)

[Nina1980]

I am trying to short sale my home. I have a FHA loan. I wanted to know do I the seller pay for closing costs and my realtor's commission fees? My realtor seems to be clueless about this and every time I ask Bank of America I can never get a straight answer. Should I just let my house foreclose? I don't have the money to pay all these fees. I have a valid offer but I thought that my lender would pay all these fees but my realtor is saying other wise. Shoot if I did have the money for all these fees then I wouldn't have to worry about trying to short sale my home. I'm just frustrated with the entire process.

[Rabrrita]

If you pay what you promised to pay when you accepted the money from them, this wouldn't be an issue.

The answer is, it depends. The seller, buyer, or mortgage holder can pay the fee. Depending on the circumstances and the amount owed and the closing cost, some lenders will expect you and the seller to figure it out. Others will stand their ground and force you into a foreclosure. Some will negotiate.

You may want to get some legal advice as to how a short sale will impact your credit versus a foreclosure.

[Nina1980]

Thank for the "advice" but if you don't know the answer then please don't comment. I already know this wouldn't be an issue if I would have paid what I promised when I accepted the money from them. You do not know my situation so your comment in the the beginning of your tread was not needed.

[BrokerHarry]

When you have an FHA loan & want or need to try to short sale, you first need obtain an Approval to Participate (ATP) directly from FHA.

What You Need to Know About the FHA Short Sale Process

FHA reviews whether you are financially eligible thru a very rigid process. The short sale will not move forward unless you can prove your eligibility.

You have to prove your expenses are greater than your income, & that you truly cannot afford to continue making payments due to a list of what they consider to be qualifying hardships.

They do this to, among other things, disallow strategic defaults by people who simply want to walk away from an upside down loan that they could otherwise afford. Loss of equity, alone, is not considered hardship.

If FHA determines that a would be seller doesn't qualify to participate...they'll burn 'em to the ground, & refuse to even consider the short sale, no matter how strong the buyer's offer. And then eventually they'll foreclose on the house if the seller doesn't get back on track.

If you can qualify, & do receive the ATP...they'll set the approved sale price...& yes, the agents get paid their commissions out of the sale proceeds...not out of your pocket.

Whether the new buyer will get their closing cost covered is up to the bank. But they're not going to let you pay them, because any cash you might have, they want!

In reality, FHA short sales are actually among the more difficult to successfully conduct.

You should talk to your broker, & get them to assign a new agent who is not 'clueless' or you may end up very disappointed.

[Slytrix]

The lender absorbs / pays all the fees in a short sale.

[pink caddy]

Originally Posted by Nina1980

Thank for the "advice" but if you don't know the answer then please don't comment. I already know this wouldn't be an issue if I would have paid what I promised when I accepted the money from them. You do not know my situation so your comment in the the beginning of your tread was not needed.

Pleeeze. That was a person trying to help making $000.00 per hour for a legal opinion. Your response of "you do not KNOW my situation" is telling and does not fit with "if you don't know the answer bla, bla". See what I mean?
Go ahead attack me too...LOL. BTW note: Very few responses to your OP. Hmmm...


Have a blessed day!