a few simple short sale questions from a newbie

[Dan Miller]

I'm working on my first short sale. Meeting with the seller tomorrow to collect all of her info. She is in pre-foreclosure and owes $204k on a property that would likely sell for about $135-145k or so.

I have a few questions:

1) Who plays closing costs typically in a short sale?

2) How/where do I create a net sheet for the bank?

3) what is the typical earnest money deposit? $10? $500? Other? Who do I leave it with?

Thanks,
Dan

[Dave P.]

Dan,

If this thread hasn't died, I will take a stab at your questions:

1. In a short sale, the bank is really the seller. They would pay seller side closing costs. Buyer side closing costs are obviously with the buyer side still.

2. PM me and I will send you a net sheet you can use.

3. From my experience, the EMD is not as important in a short sale as it is during a conventional sale. I would say something around 1% of purchase price should do the trick. The EMD should be held in a title company's trust acct.

hope this helps,

dave