Robspaintand…, Home Buyer in Chapin, SC

Closing cost on a home foreclosure that seems shady... Please help.

Asked by Robspaintandrenovation, Chapin, SC Wed Jan 30, 2013

My husband and I are about to purchase a foreclosure for $65,000 cash. Our realtor is telling us that closing cost will be no more than $700, which includes the lawyer fee, recording fee, and taxes. We already have a financed home that we purchased for $72,000 and paid $3,800 in closing cost. Is the less than $700 closing cost shady or could this be right? Someone please help before we try closing and get screwed.

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Answers

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Ask your agent to break it down for you and explain each fee and make sure of the cost. The foreclosure agent may have the information and know what the fees will be. In Florida I often sell foreclosures and many banks will not pay doc stamps and that is stated up front therefore I can calculate what the buyers cost would be. Closing cost are different when you get a loan. In Florida when a buyer pays cash their closing costs are minimal. If the bank stated you have to pay closing cost then spell out on the contract what you pay and cap the amount. Who will be paying the Realtors fees? The bank?

Talk to your Realtor they are just relaying information and if they do not have the answers for you they can get them. Good luck
0 votes Thank Flag Link Wed Jan 30, 2013
No contract has been written yet. We've been negotiating with the bank verbally through our realtor and we finally reached $65,000 cash and we pay closing. When we asked the cost of closing, we were told under $700 but we know from our existing home and some friends that have purchased foreclosures, taxes were paid a year in advance. If the tax value is $139,000, how are the closing under $700, when a title search will cost us close to $300, recording fee of $35 and the lawyer will be almost $200. That leaves little for the taxes valued at $139. But, where can I get my hands on the Hud paper your referring to outside of my realtor if possible?
0 votes Thank Flag Link Wed Jan 30, 2013
What does the contract state? Seller to pay buyer's closing fees? Better yet, ask your agent to get a copy of the preliminary HUD1 for your review and then ask your Realtor or the closing agent any questions you might have. Perhaps you have a good agent looking out for you?.Find out now!
0 votes Thank Flag Link Wed Jan 30, 2013
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