Foreclosure in Livonia>Question Details

James Moore, Both Buyer and Seller in Detroit, MI

When buying a Bank REO who pays for the closing cost and if the buyer have to pay for there on closing cost how much is it using 100k for an example.?

Asked by James Moore, Detroit, MI Sat Mar 19, 2011

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It depends and can vary. When I am representing a buyer, I always ask for some closing costs - even if the property is bank owned. However, you do need to examine the strength of your offer. One a strong or high offer you are more likely to get some or all of the closing costs you are requesting. The bottom line, it's all about negotiations.

Calvin Gleaton, Broker/Owner
Elite Realty Group
1975 Jonesboro Road
McDonough GA 30253
Direct: 770-652-3827
Office: 770-305-7934
Email: eliteleads@bellsouth.net
Web: http://www.eliterealtyatlanta.com
0 votes Thank Flag Link Sat Mar 19, 2011
Your buyers agent can assist with all your questions.

Closing costs and vary best direct those questions to mortgage broker or title company

Any sale buyer and seller both have costs involved in order to sell any property

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Mar 19, 2011
It all depends on the situation you are in. If you put in your offer that the Seller will pay a percentage of the purchase price for buyer closing costs, the offer would be weaker, but if it were to be accepted, the Bank would have to pay for what they signed a contract for. Closing costs on a $100k loan can range from $3000 to $6000 generally. Shop around for the best interest rates and closing costs.
0 votes Thank Flag Link Sat Mar 19, 2011
Hi James,

It depends on what they are. The lender for the buyer has closing costs to get the loan. When you write the offer you can ask the bank to pay the closing costs up to a certain percent. With a good offer they usually will.
If they say no, the buyer will pay, depends on the investor and the price.
The bank pays the Owners Policy on Title Insurance and the Realtor fees.
0 votes Thank Flag Link Sat Mar 19, 2011
Closing costs vary and depend on several factors such as whether you are paying cash or financing. Prorating of the property taxes will depend on the day you close. The title company fees will be included in your closing costs. If you are financing you will have considerable more expenses from the charges your lender has for the cost of borrowing the money. In addition if you are financing will be required to have one year of home owner’s insurance prior to closing and an escrow amount of the following year property taxes.

As a real estate professional licensed in Michigan I always advise people interested in properties to obtain the services of their own Buyer’s Agent. Your Buyer’s Agent will answer all your questions.

Being represented by a Buyer’s Agent will make the entire process go smoother and with less stress.

For further information and real estate questions, contact

Chip Andis ~ Buyer’s Agent
Cell (248) 931-0084

Chip@Realfi.com

REALFi
REAL ESTATE AND FINANCE IN ONE
34 S. Telegraph Rd
Waterford, MI 48328
Office (248) 886-0000
0 votes Thank Flag Link Sat Mar 19, 2011
James:

It depends on what bank or government agency is holding the REO. In most cases the buyer pays the closing costs. These can vary due to pro-ration of taxes, whether your purchasing the home with cash or getting a mortgage. If you are mortgaging you can ask the seller (bank) to pay a portion of the closing costs in your offer. Most banks allow up to 3% in closing costs. Closing costs can consist of reimbursing the seller for taxes paid in advance, title insurance (if mortgaged), title closing fee, documentation prep, filing/recordiing and transaction fees. As you can see it is difficult to estimate without more information. If you would like further assistance, just send me an e-mail with the property address and the terms of the purchase and I'll be glad to give you a more complete estimate. If you are mortgaging your lender should be able to give you a complete estimate in closing costs.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes Thank Flag Link Sat Mar 19, 2011
Both sides have closing costs, usually 3-5% for the buyer, which with the help of your Realtor, and depending on loan type and lender requirements , can many times be negotiated to have the seller pay all or some.
0 votes Thank Flag Link Sat Mar 19, 2011
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