The answer is yes and no. Because you don’t actually hand over the deed to your home to the bank until closing, you are the one receiving the sales money for the home. On paper (such as on the net sheet), you are the one paying all the closing costs, fees, taxes, real estate specialist commissions, etc. But you are immediately turning around and giving all the remaining money to the bank. Since you owe more than the home is selling for, it’s simplest to think about all the money from the sale belonging to the bank in the first place.

But what you probably really want to know is if it will cost you money out of pocket to short sell your house. The answer is – it depends. If you are doing a traditional short sale rather than a HAFA sale, the bank may ask you to agree to pay for a portion of the loss they are taking on the mortgage. This is sometimes delicately referred to as a “financial contribution”. The bank may want a lump sum up front, but they are usually willing to arrange a payment plan. Obviously, you want a real estate specialist who will negotiate aggressively to prevent you from having to pay the lender anything. That’s one reason to make sure you get an experienced short sales expert to handle your deal.