Foreclosure in San Diego>Question Details

Adrian Green, Home Buyer in San Diego, CA

Do foreclosures pay for closing cost?

Asked by Adrian Green, San Diego, CA Tue Jan 13, 2009

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How can I figure out what a home is worth if the home is listed for $380,000 and Broward county tax appraiser says it appraised at $276,000. Do I add $50,000 for the homestead exemption to get more of a accured figure.
0 votes Thank Flag Link Mon Apr 1, 2013
If I looked at a property of the Broward county tax appraiser and it shows that the home is worth $275,000 do I add another $50,000 for homestead to get the actual selling price for that home and that home is listed for $380,000 how can they sell a home above price
0 votes Thank Flag Link Mon Apr 1, 2013
Yes they do and make sure your agent includes them in your offer.

Dawn Lewis
http://www.dawnsellssandiego.com/
0 votes Thank Flag Link Wed Jan 21, 2009
Adrian,

Closing costs are normally shared between the buyer and seller. There is no formula for foreclosure closing expenses. Banks will sometimes negotiate these expenses or offer credit for using their services.
0 votes Thank Flag Link Mon Jan 19, 2009
There is no guarantee. If you are the buyer, ask your agent for a certain dollar amount in closing cost, versus a percentage. I find that agent's who write in a figure like 3% in closing costs paid by the seller are usually countered. These closing costs and all costs for that matter are coming out of the proceeds, which are being provided by the buyer, so the ledger sheet will be run lean and mean. The difference between a yes and a not on a deal comes down to the bottom line being paid to the bank for a home on which they've already taken a great loss.

The greatest shock to buyers today is how many buyers are bidding on foreclosed homes and how bad the communication is from the listing agent. I generalize, but it's very bad and hard to get questions answered, offers acknowledged and get attention in general. And I am primarily a listing agent, so this behavior is very frustrating! So you need to write your best, cleanest offer first. In many cases you won't be given a counter offer and therefore no second chance to try again.

I live in this world that I describe and speak from front line experience. That said, I find that if a property can go FHA (3.5% down), then closing costs are more customarily not countered to a lower number. That's just my comparison of my deals.

Foreclosures don't pay closing costs. Sellers pay closing costs. I believe that's your question. And it's negotiable. And it's competitive. Don't get greedy. But what you can afford and ask for some closing cost assistance. I never write an offer without it. If you want more help and want to know what I ask for in an offer for a buyer, please call me.

-Kimberly
0 votes Thank Flag Link Mon Jan 19, 2009
Hi Adrian,

Depends on how good your Realtor is!:) If you picked a good one and they know what they are doing, most likely you will have closing costs paid for by the seller.

Cassandra
0 votes Thank Flag Link Thu Jan 15, 2009
Hi Adrian,

I have a lot of REO listings and what I find is the seller is paying the costs, they look at VA loans which will not let the vet pay any fees, plus FHA, where again the buyer is going to finance their fees.

Agian like all real estate deals, you need to look at them on case-by-case situation. However in the last 5 REO listings I have sold they all had their typical escrow fees covered and then a lot of the time more fees.

If you want to know more about REO's in the north county, please visit my webiste

Hope this helps, catherine barden, real estate consultant
0 votes Thank Flag Link Wed Jan 14, 2009
Hi Adrian, in all of my 2008 REO purchases I was not only able to obtain a price reduction, but also a 6% seller-paid buyer closing cost credit. Note that a 6% seller credit is only available if you use FHA financing; otherwise, this Seller credit is capped at 3% of sales price, not 6%.

Also, you may want to look into FHA financing if you are concerned about your credit score as the guidelines under this program are more flexible in this area, and only require a minimum down payment of 3.5%.

The downside of the FHA financing is that you will pay Mortgage Insurance for a minimum of 5 years. However, given the year ahead of us, this might be less costly than downpayment equity loss during 2009.

Although I am a Mortgage Banker and Realtor, I do not provide FHA financing services; however, I have a referral if needed (please contact me offline if interested).

Best Regards, Steve
0 votes Thank Flag Link Wed Jan 14, 2009
Technically, they could. The reality is that in most cases, they will not. The reason being that most foreclosures these days, are attracting multiple offers. They are priced low to attract multiple offers. The bank that owns the property is looking for the buyer who has the strongest highest offer, strongest down payment, least requirements including the asking of things like closing costs, termite repairs, etc... Most of the buyers I have been helping out over the past year, who needed closing costs to be paid by the seller ( in this case, the bank who owns the foreclosed property ), have missed out to either cash buyers, or buyers coming in with stronger offers. Now, if the house you are bidding on has been available for some time, you stand a better chance. Each case needs to be strategized with your Real Estate Agent, and you need a very good one to suceed. At this juncture, you should also consider homes that are offered as short sales. You will have less competition with other buyers and will be able to ask for closing costs with a better chance of getting them paid. There's more involved in these transactions you need to be cautious about, so please, do work with an experienced Real Estate Consultant. You can reach me with any other questions at miriamrealestate@hotmail.com
0 votes Thank Flag Link Wed Jan 14, 2009
Hi Adrian,

Foreclosed properties are being sold by the banks that repossessed them, and all banks are handling their asset management differently; however, my experience so far is that offers made on bank foreclosed properties are faster to process if the buyer has more cash for a down payment. Whether or not you ask for closing costs is secondary to how much investment capital you, as a buyer, have to put into it. I hope this helps. Feel free to contact us directly with further questions.
Web Reference: http://www.WeSell92101.com
0 votes Thank Flag Link Tue Jan 13, 2009
You can certainly ask for closing costs to be paid by the Bank (Seller). It would depend on your offer and how motivated the Bank is to sell if they would accept paying them.
0 votes Thank Flag Link Tue Jan 13, 2009
Sometimes...it all depends on how your buyers agent writes the offer.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Tue Jan 13, 2009
The Hagley G…, Real Estate Pro in Pleasanton, CA
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