Who Pays Commission in a Short Sale – Rocklin Short Sale Agent Allan Sanchez
Yesterday I met with a client who wanted to short sale his Rocklin home. He had several short sale questions, especially when it came to the new MARS disclosure that sellers must sign before listing their home as a short sale. As a seller with a ligitimate financial hardship, his biggest questions was “Who pays the agent’s commission during a short sale?”
MARS came about to try to prevent shady characters, like quick loan-modification companies, from scamming distressed sellers and collecting up front fess. As a Rocklin short sale agent, I’m now required to explain the key points of the MARRS disclosure.
MARS clearly states: If you accept the offer, you will have to pay us (insert amount) for our services. What does this mean for a Rocklin short sale seller? It means that the short sale commissions will be paid out of the sales proceeds. The lender is not paying the short sale commission but they are negotiating agent fees in order to retain as much of the gross sales proceeds as possible.
The lender does not own your home, you do. The lender does not pay short sale commission. In a Rocklin short sale, commissions and escrow/title fees, are taken out of the sales proceeds. The rest of the money goes to the lender. Short sale sellers do not receive money from sales proceeds.
MARS also states: You may stop doing business with us at any time. It goes on to say: If you reject the offer, you do not have to pay us. The MARS disclosure is protection for sellers and discloses that sellers can cancel a short sale at any time. Once the short sale closes, then sellers are responsible for paying agent’s commission, which comes straight from the title company, out of the sales proceeds.
See if you qualify for a Rocklin short sale.
Who Pays Commission in a Short Sale – Rocklin Short Sale Agent Allan Sanchez
Posted by Rocklin Real Estate Agent – Allan Sanchez – www.AllansHomes.com
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