As you probably know, most sellers of REO properties will require you to provide proof of funds for the amount of the purchase price along with your offer. So, if financing, you will need t be pre-approved with your lender before making an offer. The lender will provide you with a good faith estimate of your closing costs. Since you have indicated that you are making a full price offer, I would ask the seller to pay ALL of your closing costs (based on your good faith extimate). All the seller can do is say NO, Yes or make a counter offer. Give it a try... what have you got to lose.
I'm talking with another lender to see if they can offer me better. The first bank I tried working with was fine and estimated over $2400 less than the 2nd, but Im' no longer working with them since they said they won't cover a foreclosure.
I'll see what this new bank can do and if closign costs aren't too extreme I'll see if we should ask the seller to pay all.
In response to Bill, I am making a full price offer. I am not going below the listing price so that I CAN ask them to pay a portion of my closing costs without any offense. My lender recomended that I ask for $1000 towards the closing AND lower my offer to $40,000, but I was not going to push my luck.
I told my realtor that I would ask for 3%, but was just wondering what others opinions were so that I could think about asking for more if possible.
You want to borrow their money to buy their property, and want them to pay their own fees...you can see why they typically don't like to pay closing costs.
Buying a Bank Owned Property can be a very tricky endevour, even more so than a typical resiential sale, you should talk to your REALTOR about your concerns.
This is a question best directed to your real estate professional that is assisting you through the "foreclosure" process. The reality is that not all banks will accept paying a portion of the closing costs.
Are you making a full price offer? If you are low balling the bank and asking them to contribute toward the closing you may be looking at a lost cause. What does your aget recommend?