Foreclosure in Harvest>Question Details

Krysta Zurow…, Both Buyer and Seller in Huntsville, AL

Will the bank pay closing on a bank owned property?

Asked by Krysta Zurowski, Huntsville, AL Sun Feb 26, 2012

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Barbara E. Nowak, CDPE, CBR’s answer
Hi Krysta,

Yes. But when you make an offer, you need to specify that. It is called seller's concession. Your closing costs will be included in the mortgage. If you are going with FHA mortgage, the maximum closing costs to be included in your mortgage is 3%. Speak to your broker, if you don't have one, find one and he/she will be able to guide you through the process.

Barbara E. Nowak
0 votes Thank Flag Link Mon Feb 27, 2012
As long as your offer is reasonable and so is the bank. Not all banks are calling the shots, so they may not be as reasonable as you may expect. If the lender is a smaller institution with lots of REO’s they may not be calling the shots, an auditor may be telling them what to do. And if you low ball them the chances diminish they will add more money to the loss they are already taking.
0 votes Thank Flag Link Mon Feb 27, 2012
Yes, Krysta. Banks will pay the closing cost for their properties. It would be part of the negotiation process to ensure all cc's are covered. If you would like an estimate of closing costs to include escrows and prepaids, send me the zip code and asking price to robin.gerrish@charter.net or call me at 256-374-9139. Look forward to working with you.
0 votes Thank Flag Link Mon Feb 27, 2012
Yes, banks will pay a buyer's closing costs just like any regualr seller would. Many will however limit it to around 3% of the sales price. Bank sellers look at the bottom line net of an offer. When asking for closing cost contribution, you will not be able to negotiate as much on the sales price.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Sun Feb 26, 2012
Banks, like normal sellers, will look at all offers on their individual merits. It is doubtful you will get a large price reduction along with closing costs being paid, but more likely if you pay close to or what the bank is asking for the house. It's the bottom line they look at, just like a normal seller.
0 votes Thank Flag Link Sun Feb 26, 2012
Krysta,

Yes, each case may be individual, but I have sold several foreclosures in the Huntsville, AL area where the bank (HUD) paid the closing. If you have further questions don't hesitate to call me at 256-679-4462. I will be glad to help you.

Thanks,

Regina Nichols-Realtor-ABR
Summit Realtors
regina.nichols.homes@gmail.com
256-6794462
0 votes Thank Flag Link Sun Feb 26, 2012
Yes I have seen banks pay closing costs.
0 votes Thank Flag Link Sun Feb 26, 2012
Yes, closing costs can be included in your offer. An experienced Realtor is very important in this process. He/She will know how to include those costs to ensure the seller/bank covers them. If you need someone in your area, let me know. I would be happy to provide you with a recommendation.
0 votes Thank Flag Link Sun Feb 26, 2012
Usually not:
That and REPAIRS are anathama to the Banks.

If you are CASH challenged;
you might offer a little more for the house; making it clear what you are doing, and include ~3% for Buyer's Closing Costs.

Good luck and may God bless
0 votes Thank Flag Link Sun Feb 26, 2012
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