No Real Estate Commissions To Be Paid By Homeowners For Selling Their House In A Short Sale.

May 16, 2011 - PRLog -- Homeowners can now avoid foreclosure, do a short sale, and save their credit report, all for FREE. No costs to seller, whatsoever. No strings attached.

It is a sad and unfortunate fact that most of the distressed homeowners do not take any action to save themselves from foreclosure for many reasons. A lot of homeowners are worried about paying real estate commissions to agents who sell their homes. “I think that a short sale is my best option, but I can’t afford to pay the real estate agents’ commissions.”The reality is that agents are paid by the short sale mortgage lenders, and NOT homeowners. Homeowners do not pay real estate commissions to do a short sale. Real Estate agents do all the work to get a short sale approved and are, in turn, paid commissions by the short sale mortgage lender.

Lenders are losing a lot more money in foreclosure sales than in short sales. In the case of a foreclosure sale, mortgage lenders have to go through process of foreclosing and then putting the property on market. Also, since the properties are no longer occupied, they are more prone to damage and vandalism. Banks are in the business to lend money, not to own properties. If the property becomes an REO (real estate owned; bank owned), the bank now has the responsibility to pay property taxes, insurance, utilities, etc. They have to keep the property up by paying somebody to mow the lawn, clean the inside, inspect it to make sure that there are no squatters, break-ins, vandalism, etc. If the property is in terrible shape, the bank may also need to do repairs on the property as well.

Mortgage lenders do not like excess inventory and bad loans on their books. So, they pay commissions to real estate agents for helping them in getting these problem loans off their books. Real Estate agents work with homeowners and help them compile and put together all the necessary paperwork to apply for a short sale. They negotiate with the mortgage lender to approve the short sale, and once the short sale is approved and the property is sold, mortgage lender pays commissions to the agents for their services.