Home Buying in Waldorf>Question Details

Not1bug, Home Buyer in Richmond, VA

Have banks approved paying some of the closing costs on short sales if the owner accepts the offer.

Asked by Not1bug, Richmond, VA Sat Jun 2, 2012

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Yes, the banks do "usually" pay some of the buyers closing cost......typically 3% of the sales price.
1 vote Thank Flag Link Mon Jun 4, 2012
Hi Not1bug,

the banks will normally agree to 3 closing assistance for the buyer. if it is HAFA the seller is eligible for 3000 assistance.

good luck
0 votes Thank Flag Link Sun Aug 5, 2012
Hi Not1bug,

Yes banks will consider paying some or all of your closing costs if they are reasonable and customary for your area. You can write up any amount you like in your offer but don't go into an offer expecting (or needing) more than 3%. And be financially qualified and prepared for a counter-offer on property price to within a reasonable range of current market value. Unless there are condition issues most banks are not accepting lowball offers. So if you take yourself off the market to wait for a short sale for 90 - 120 days you want to make sure you have an acceptable offer on the table with room for negotiation.
0 votes Thank Flag Link Mon Jun 4, 2012
Good morning Not1bug,

Since closing costs are so ridiculously expensive here in the NY Metro area, a "Seller's Concession" to pay a Purchaser's closing costs is often a necessary part of the Offer and Contract to Purchase a home.

The most I have seen allowed as a Seller's concession for closing costs on a Short Sale is 3%. This concession must be included in your initial offer and contract of sale (or Purchase Memo) and must be disclosed to the Short Sale Lender from the outset. The concession becomes part of the Short Sale Lender's deliberations on the Short Sale approval. I have seen some Short Sale Lenders approve a Short Sale but without a Seller's concession, even though the concession was disclosed from the beginning. In many cases, this may be a deal-killer because a Purchaser may not be able to complete the transaction without the assistance in paying closing costs.

A lot depends on who is handling the short sale negotations on behalf of the Homeowner.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Mon Jun 4, 2012
Depending on your Offer, Yes, ask and they will consider. Must be asked in the Offer.
0 votes Thank Flag Link Mon Jun 4, 2012
Banks typically will pay some closing costs for the buyer. The banks generally do not pay more than 3% of the sales price towards the buyers closing costs.

Candide Rayle
Century 21 New Millennium
0 votes Thank Flag Link Sat Jun 2, 2012
Lately, if the Buyer asks for Closing Costs in a Shortsale, the Bank looks at the total picture; the NET amount to them. If the Offering Price is inflated by $5000 and the Closing Costs are $5000, then the Bank may say YES.
But you still have to get that total under the Appraisal.

Good luck and may God bless
0 votes Thank Flag Link Sat Jun 2, 2012
Banks do pay some of the closing costs, it depends on how it is negotiated, who the bank is and what they are receiving for a percentage of what is owed. using a well expereinced listing agent can certainly help guide you through the process.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Jun 2, 2012
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