FALSE: The seller does not pay the typical 6% for the buyer and sellers agent.
Over the last few weeks I have come across sellers who are hesitant to do a short sale because they do not want to pay the commission when they can “walk on their home for free.” (another misconception) Since the home is a 1) short sale (the property value is worth less than their remaining loan) and the 2) sellers show they have no money to pay off the remaining debt, then their lender negotiates a commission paid by the sale of the home. Many sellers think they need to pay for the additional funds, but Realtors only get paid at Close of Escrow. So if you get a loan modification in the meantime or if something happens where you do not need/qualify for a short sale, then you do not have to pay for a commission. It may be in your best interest to try a short sale to save your credit and other issues that may arise, speak to your CPA and real estate attorney. To see how a foreclosure affects your credit: Click Here