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.
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
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
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.