Home Buying in 08065>Question Details

Antbug2001, Home Buyer in 08065

Can closing cost be paid by the seller/bank on a short sale?

Asked by Antbug2001, 08065 Wed May 25, 2011

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11
Typically not.

If you are looking for a short sale, which is usually a situation where there are no funds for anyone, including the bank that has the mortgage...there are no funds.

So, basically, you want a real good deal from a bank on a short sale, then you want them to pay for you to close it... C'mon..listen to yourself. Does this make sense to you?
1 vote Thank Flag Link Wed May 25, 2011
I have closed many short sales and many banks have accepted closing costs between 1% and 3%.

Janet Larsen, Broker/Associate
Remax Connection
856-261-6910
Web Reference: http://www.njrealtorjan.com
0 votes Thank Flag Link Tue Jun 7, 2011
I have closed many short sales and many banks have accepted closing costs between 1% and 3%.

Janet Larsen, Broker/Associate
Remax Connection
856-261-6910
Web Reference: http://www.njrealtorjan.com
0 votes Thank Flag Link Tue Jun 7, 2011
They but on short sales they are usually unable or unwilling to do so.
Ruth Bonapace
Ruthbonapace@bankofamerica.com
0 votes Thank Flag Link Mon May 30, 2011
It's unlikely they'll do that but yes, it is possible. If you are financing there are restrictions as to how much they can contribute - usually no more than actual non-recurring costs with a cap of 3% to 6% of the sale price, depending on the program. You'll still need to pay pre-paid interest plus real estate tax and homeowners' insurance escrows.
0 votes Thank Flag Link Wed May 25, 2011
Hello Antbug2001,
Thank you for your question.
You could get the bank to pay some closing costs if the offer you present to the bank gives them the $ they are willing to accept. Sometimes if the offer is too low they will decline the closing costs request. Have your Realtor do an analysis of the homes sold in the area to see what's reasonable but you have to be patient and be ready to be given a counter from the bank.
I have had transactions that they give and some others that they had not.
Good luck,
Ines De La Cruz
RE/MAX Connection
inesdelacruz@remax.net
Web Reference: http://www.inesdelacruz.com
0 votes Thank Flag Link Wed May 25, 2011
Hi Antbug2001,

Yes, closing costs can be paid by the seller/bank on a short sale. Will they? That depends on the seller/bank, the offer, and the market value of the property. I've had short sales close where the seller/bank has paid some closing costs and I've had some where they haven't.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Wed May 25, 2011
I agree with Joe - majority of my clients purchase REO & short sale properties and a majority of them get seller credits towards the costs. It could be the other agents markets, but I find when someone says "Sellers do not typically give credits" it could be a sign of an agent who hasn't been able to successfully ask for them. In the markets I've all done financing in it never seems like it's a great difficulty to get the seller to pay closing costs. The only times I don't see the seller's bank approve closing costs to be paid for is when they aren't asked for - honestly. Also, the higher price ranges tend to not see too many sellers credits since the higher price ranges buyers typically have a lot of funds for down payment and to pay their own closing costs. If you want something, I always recommend you ask, because you won't get something you don't ask for in a purchase contract.
0 votes Thank Flag Link Wed May 25, 2011
The short answer, no. The sellers lender typically does not pay the buyer closing costs.

If I understand, you want to inflate the sales price to finance the closing costs. That won't work either. The bank will want those funds.

My suggestion is to price the home with the close costs out of the sales price.
Web Reference: http://www.cyndibell.com
0 votes Thank Flag Link Wed May 25, 2011
Depending on the bank/investor approving the short sale, they may limit the seller concession to 3% although some will allow a 6% seller concession. There may also be limitations on the seller concession from YOUR lender too.

Joe
---------------------------------
Joe Montenigro REMAX Home Team
Broker, GRI (856)374-2800 x106
Serving Gloucester Twp, Washington Twp & South Jersey Real Estate Markets
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Note- Email me directly for follow up questions or answers, I don't monitor this forum for replies.
0 votes Thank Flag Link Wed May 25, 2011
Can't the closing costs be added to the mortgage and the bank still get what they were looking for?
0 votes Thank Flag Link Wed May 25, 2011
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