Who Pays Closing Costs in a Short Sale? Nashville’s Expert Michael Szakos Explains

If you're a homeowner in Nashville or surrounding areas facing financial hardship, you might be wondering "Who pays closing costs in a short sale?" The answer may surprise you—in most short sales, you pay nothing out of pocket. At Your Home Sold Guaranteed Realty – Michael Szakos, we've guided hundreds of families through the short sale process, and we’re here to break it down.

📌 Key Takeaways:

• Closing costs in a short sale are covered from the sale proceeds, not by you, the seller.
• Lenders must approve all disbursements—including commissions, title fees, and taxes.
• You typically pay $0 at closing—great news during a difficult time.
• Buyers still cover their own standard closing costs unless negotiated otherwise.

🏦 Who Gets Paid in a Short Sale?

All payments are made through the sale proceeds and must be approved by the lender—since they are accepting less than the mortgage balance owed. These include:

• The lender – Receives the net proceeds.
• Realtors – Standard commissions for buyer & listing agent (approved by lender).
• Title company or escrow agent – Manages closing, ensures legal compliance.
• Third parties – HOAs, tax authorities, appraisers, inspectors, etc.

🔍 Why Does the Lender Pay These Costs?

Foreclosure is more expensive for the bank. A short sale allows them to recover funds faster and with fewer losses. That’s why they’re often willing to pay these costs—provided the documentation and negotiation are handled properly.

💡 How Short Sale Costs Differ from Traditional Sales

In a normal home sale, sellers pay closing costs from their home’s equity. But in a short sale, there’s no equity—so the lender pays. That’s why working with an experienced short sale team like Team Szakos is essential.

🙋‍♀️ Why Choose Michael Szakos for Your Nashville Short Sale?

• Over a decade of short sale experience across Tennessee.
• Trusted by hundreds of families in hardship situations.
• Hundreds of 5-star Google reviews for communication & success.
• Guaranteed Sale Program*—your home sold, or we’ll buy it!

Call or Text: 615-488-7263
Email: support@teamszakos.com
Website: yourhomesoldguaranteedrealty-michaelszakos.com

✨ Frequently Asked Question:

Do buyers pay closing costs in a short sale?

Yes, buyers usually pay their own standard closing costs such as loan origination, appraisal, and inspection fees—unless negotiated differently. In some cases, lenders may approve buyer credits to speed up the process.

Go Serve Big! 🙏🏡

*Conditions apply. Call for full details.