Home Buying in Jacksonville>Question Details

Penni Lowery, Home Buyer in 33954

How much should I expect to pay in closing costs on a Fannie Mae foreclosure if I pay cash and this is not an investment property.?

Asked by Penni Lowery, 33954 Thu Jun 27, 2013

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Bargain with the mortgage lender to pay the closing costs. Mortgage companies are eager to sell their foreclosures and begin recouping their losses. Lenders are more open to negotiations if a property attracts little interest. Talk to the lender handling the foreclosure, and ask them to pay the closing costs to eliminate your out of pocket expense - http://ForeclosureIQ.com
0 votes Thank Flag Link Fri Aug 21, 2015
It is relative to the price point. Keep in mind everything is negotiable. Fannie Mae is exempt from some fees. For that matter all the Agencies are exempt. Meaning you the buyer pick them up if you want to close.
Now if you negotiate the seller to pay those as in most offers then at least you have that part of the transaction taken care of.

Best of Luck. Feel free to call on us. 904-607-4668
0 votes Thank Flag Link Tue Jul 16, 2013
I've worked with an investor who buys Fannie Mae properties a lot and here is the deal: Fannie Mae actually does not pay what is considered "customary seller's closing costs" so you have to be sure to add in the appropriate amount in actual dollars you want them to contribute. You cannot put a percentage in.

As an example, on $150,000, you would want to calculate the deed stamps and owners title insurance amounts ($1050 + $785 = $1835). However, they anticipate that buyers will request some contribution so we usually put in $2000 in that circumstance as the investor also pays cash. My investor pays for survey, closing agent fee, other buyer costs. The closing agent fee can be tricky also depending on who Fannie Mae chooses. We've closed with title companies all over the state via mail away closings, and the fees vary tremendously. Fannie Mae pays a closing fee and buyer does the same; it can be between $450 to $750 and not negotiable.

Have your agent calculate exactly what your costs will be and you can come up with the dollar amount to request Fannie Mae to pay.

If you need any help, just contact me at pattiodwyer@gmail.com. I love selling Fannie Mae properties as it can move very quickly thru their system. Also remember they do not make repairs so an inspection is very important.
0 votes Thank Flag Link Thu Jun 27, 2013
I don't get it. Just got my closing papers. Title company slaps a $990. title in fee that fannie mae (seller) agreed to pay. The house was only $32,000., and I am a cash buyer!
Flag Wed Mar 18, 2015

Good question,

...as a buyer you will be responsible for county recording fees (usually less than $100). Property Inspection fee (+/-$350 paid to inspector of your choice) Survey, if needed (+/- $250), courier/wire fees (vary upon banking institution, under $100)and any fees imposed by your lender if property is financed. (contact your lender for list of fees).

Those are customary cost as a buyer., as you can see fees vary, so my advice will be to budget 2.-3.% of the purchase price for your closing costs.

Hope this information is helpful.

-MIguel Ojeda
REALTOR, Exit Real Estate Gallery
0 votes Thank Flag Link Thu Jun 27, 2013
Fannie Mne would approve closing cost up to 3.5% if asked for in your offer. You can expect to pay from 2.5% up to 3.5% of the price of the property. Also, some of those expenses are tax deductible. Congratulations on your decision to invest in a foreclosure.

Contact me at Watson Realty Referral
cell: 904-962-7703
Download App: Margaret Rogers RE
0 votes Thank Flag Link Thu Jun 27, 2013
Donna is right you will have very little closing costs if you pay cash. Most of the inspections are optional but recommended. Also note,If you do inspections and the power has been off for more than a year which is common with many foreclosures you will also have to get an electrical inspection done at your cost before JEA will turn it on. Usually 300-450 depending on the electrician this includes the permit fee. Good luck with your bid.
0 votes Thank Flag Link Thu Jun 27, 2013
Thank you for your question Ms. Lowery.......the closing costs when buying a property with CASH is minimal...and ....depends on how YOU choose to spend your money.
When paying CASH...there is NO MORTGAGE...so...you do not have stamps on the note, etc...because there is NO NOTE.
IF you CHOOSE to have an inspection that inspection will cost $300-$400 + -
You can CHOOSE to have a wood destroying organism report....may cost about $125
You can CHOOSE to have a survey....cost can be $ 250-$400
You will NEED to record the deed.....less than $100
You may or may not need to pay pro-rated property taxes....depends on date you close....the seller may wind up PAYING YOU pro-rated property taxes.
That is about it...UNLESS you agree to any additional charges.
Good Luck with your purchase....and...again...thank you for your question.

Donna Delegal
"The Real Estate Lady"
Oceanside Real Estate
(904) 732-PACK (904) 732-7225
0 votes Thank Flag Link Thu Jun 27, 2013
I agree with the prior response, with out knowing the price and area of purchase I would say between 3% to 4.5% of the property price. Cash does not change the closing cost very much, which is based on stamps, taxes, fees and also which month you close in.
0 votes Thank Flag Link Thu Jun 27, 2013
Your realtor should provide you with an Estimated Buyers Closing Cost form. If not, as a ballpark figure, and ball park only, I would recommend at least 3% of the purchase price, not including your deposit or down payment. There could be other costs involved, without knowing your exact situation, I can only give a broad answer. You should by all means consult your realtor. Not the listing agent, but your realtor, the one representing you. If you don't have one, I would highly recommend having one. As a buyer the service is free.

Congratulations on your purchase!

Rosina Eisenmann, REALTOR
FAX 246-4873
Watson Realty Corp
RPAC Chair 2013
NEFAR - Beaches Council Chair 2012
Leadership Academy Graduate 2011

Be a blessing as you are blessed!
0 votes Thank Flag Link Thu Jun 27, 2013
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