NRCC stands for, Non Recurring Closing Cost; which are basically things like escrow, title, recording fees, points, and other fees that don't recur. Recurring fees would be things like Impounds for taxes, Home Owners Insurance, and Mortgage Interest.

I hope this helps you.

They are probably talking about lender seller concessions. Meaning your bank would pay no more than 3500 towards the closing costs of the buyer. Since it's negotiated between the buyer and your bank it's the bank who pays and approves fees they have to accept.

Andrew and Elena Ollick
Amerivest Realty
239-206-4500
eo@oceanhomesrealty.com
Latest Post: Foreclosure Halt creates Problems http://www.andrewollick.com/realestateblog

Hmm, well when I help my clients with Short Selling their homes I make sure they don't pay any fees or charges; they're selling their homes because they couldn't afford to live there and in most cases are living on a very small budget.

Your agent should be helping you understand the process and making sure things go smoothly. You getting a letter from your current lender mentioning NRCC of $3,500 is not enough information for me to make a clear determination as to what they indicating; my hunch is that their caping the amount they'll credit the new buyer to no more then $3,500, but again ask you're agent to clarify!

Generally when someone short sells a home they engage a Realtor to list their home and Realtor then has the seller complete a package of information that their lender will require to be submitted with an offer to begin the process. I'm not getting the feeling that you have someone like that the refer to when you have these types of basic questions; if you don't I would suggest you find that person and fast.

I hope this information was helpful.

Keith E. Green
Local Santee Agent!

This is non recurring closing costs-these costs only occur once. For example, your escrow fees are non recurring closing costs.

Aaron Roth
Realtor & Certified Appraiser
858-354-9913

Hi Bo,

NRCC stands for Non-Recurring Closing Costs. These are costs that occur only once, like escrow fees, wiring fees. etc. Recurring Closing Costs are ongoing costs like HOA fees that occur every month, property taxes, Mello Roos, etc.

It looks like from your question that you will pay up to $3,500 for the buyer. If the Non-Recurring Closing Costs are less, you'll pay less. If you're doing a short sale, you'll have no proceeds from the sale, so the $3,500 will come out of the sale proceeds - a debit for you, and a credit to the buyer. The $3,500 was likely initiated by the buyer, and included in the Purchase Offer that you and the buyer agreed to. Seller concessions are pretty common in this market, as a lot of first-time buyers don't have enough for a down payment and closing costs.

Good luck with your short sale, i hope it's going smoothly for you!

Non Recurring closing Costs not to exceed $3500.00 this means they are asking your lender to cover some of the buyers closings costs up to $3500.00:)

I hope that helps good luck with the short sale.

Vincent Villafranca
Prudential CA Realty
940 Eastlake Parkway
Chula Vista CA 91914
619 972 8798

In the 2nd sentence I intended to say "not to exceed $3500". I'm sorry I didn't catch it before I posted.

Bo,

If it is a short sale, you should not have to pay any fee's. The contract you accepted, should dictate that the buyer is receiving a credit not of $3500. Your bank (that has the current loan and is reviewing or accepting a short sale) is saying the credit can't be more than $3500 and that it can't be used for recuring costs (the 1st answer decribes that well).

I suggest you have your Realtor (helping you sell) contact the buyers mortgage broker directly to ensure that the buyers lender (obtaining the new purchase loan) understands the credit is only for non-recurring closing costs.

NRCC stands for Non Recurring Closing Costs
These items include one time fees such as escrow, title, recording, etc.
Recurring closing costs are items such as property taxes, insurance, and prepaid interest
Some lenders allow credits for both, but most only allow credits for NRCC's.
Good luck

That is saying that your mortgage company will allow a $3,500 seller's concession to the buyer for closing costs, as long as their mortgage company will allow it. Some buyers don't have quite enough money for down payment plus closing costs, so they get help in the form of a seller's concession.