More than likely you will pay the closing cost. The banks feel that they have come down on the price of the home. Howver, if your offer called for the seller to pay closing costs and they accepted your offer than the seller pays.

Hi Ladybug,

The answer is...it depends. Normally there are closing costs (cost, sometimes taxes too, for services provided that are essential to the transaction closing. It is customary for the buyer to pay those cost associated with buying the home, such as closing costs to their mortgage, while the seller normally covers the costs of selling the home such as sales taxes.

However, if you are working with a savvy realtor then you may be able to negotiate for the seller to cover some or all of YOUR closing costs for you as well. That more or less depends on the bank selling the home, because some banks will absolutely not agree to pay for your costs (although like Annette said they may reduce the price instead)

We purchased a foreclosure home last June and we did pay the closing cost however the bank that had the foreclosure did come off the price 10,000 dollars! I hear that alot of times banks or mortgage companys will not budge to much on the price, so I think if you can get them to come off the price some this helps in covering the closing cost!

There's no set answer to this...you have to watch the disclosures, and terms of a listing pretty carefully--I always advise clients writing offers on bank owned homes to be specific in the offer on what (if any) closing cost they want a bank to pay. Traditionally, sellers pay Michigan's transfer tax, purchase title insurance for the buyer, and if home is listed the real estate commissions come off the sellers side.