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Most of the time short sales end up costing the seller nothing. Periodically though, the lender may ask the seller to contribute to the short sale in either the form of a cash contribution at closing or an unsecured promissory note payable after closing. It is impossible to predict for certain which sellers will get asked for such a contribution, however the odds of being asked to contribute increase when:
- There is private mortgage insurance on the loan
- The property is an investment property rather than an owner occupied property
- The seller has good credit and is current on all other payments
- The seller has income in excess of his/her monthly payments
- The seller has significant assets
It is not a given that you will necessarily be asked to contribute if you fall into the above groups, nor are you necessarily excluded by not qualifying into the above groups, however the odds increase when you meet the above criteria. Being asked to contribute cash or a promissory note to your short sale is not necessarily the end. With the help of an experienced CT short sale realtor, you may in fact be able to negotiate or even eliminate such demands and still be able to close your short sale.