And by the way, if you are going to negotiate money towards downpayment, you are truly better off negotiating those dollars off the sales price instead. Your property tax is based on your purchase price.

Mon Jun 30 2008, 20:03

It is, but unless the property is an absolutely smoking deal that is below what it would cost you to rent it, then you should really consider saving for your DP. We just bought a property that was an awesome price at the time we negotiated in April and already prices have plunged to where it wouldn't be a great deal only two months later. Prices are still in free fall. You have time to build yourself more cushion and it will better prepare you for homeownership.

Mon Jun 30 2008, 19:58

My co-worker borrowed funds to hold them on deposit. The funds were verified so she could qualify for her mortgage. It was easy to get the loan with no credit check because she agreed to just hold the funds on deposit. Then she got a down payment assistance program to make her down payment for her, and she just gave back the deposited funds loan proceeds to the lender. It also helped her credit. I know she got the loan with creditloader dot com, but I don't know what kind of down payment assistance she used. Can anyone recommend a down payment assistance program that is still widely accepted?

Mon Jun 30 2008, 17:59

Maybe - depends if you mean seller credits or govt. down payment assistance included in your financing, the process to get the latter typically takes long enough to make your offer not very appealing to REO banks compared to other offers.

Fri May 9 2008, 22:15

The short answer is yes...however the longer answer is that it depends. Just like with any listing and seller, that item is negotiable.

You really need to examine the individual property itself, the length of time on the market, what else is on the market nearby, how well it is priced, the price range the property falls into, and its condition, etc. In a competitive multiple offer situation, you might be able to get the bank/seller to agree to a credit for closing costs, but not agree to cooperate with 3rd party downpayment assistance.

In the end it will all boil down to the seller's net (how much they get from the sale), and if the property can appraise at or above the purchase price inclusive of all the credits. Good luck to you.

Mon Apr 28 2008, 09:48

Some banks won't do it, some banks will. Find a house you like, make an offer, if they say no, they will say no before you spend money on an appraisal and home inspection. If they say no. find a different house and a different owner. If they say yes, then fine.

Mon Apr 28 2008, 00:48

We are in escrow on a foreclosure property right now. The house was priced pretty aggressively to begin with and in this particular city every foreclosure that was priced right went into escrow the first week and were multiple offer situations. Our first offer was for asking price with $5K back for closing costs. It turned out to be a multiple offer situation as well, but their counter included giving the $5K. In the end, we decided to counter without the money back. The selling bank didn't seem to have a problem with givng a credit. They just wanted to net the most money possible. This clause was in their counters

S eller will not pay for nor credit Buyer(s) for VA, FHA or other loan/financing costs or
fees; nor will they pay for or credit any other costs, fees, survey, home warranty plan,
inspections or repairs unless otherwise stated and defined above.

The first counter they sent said seller to credit buyer up to $5,000 towards closing costs and this was above the clause about not doing it. Our loan was not an FHA or VA.

Sun Apr 27 2008, 08:17

I disagree with "lowballing" an offer on a bank owned homes. There are so many of these on the market, lenders are getting much more aggressive on price to generate multiple offers. It is CRITICAL that you work with a local REALTOR with experience to get you the best deal for your money. Low-balling an offer may cause you to lose an amazing home at an amazing price. Find a local REALTOR and take their advice.

Sat Apr 26 2008, 23:01

Yes, it can. Please don't expect to "low-ball" the offer AND ask for assistance. With an FHA loan, the seller can pay up to 3% of that down payment for you plus another 4% or so in closing costs. In some cases, where the foreclosed property is exceptional, you may want to offer a little over asking price and then ask for the down payment assistance and closing costs. You need an experienced local realtor to help you go through this process. The new loan programs are exciting. If you haven't yet seen a lender, I recommend you do that first, then go with your realtor and start shopping.

Sat Apr 26 2008, 18:42