It depends on what bank or government agency is holding the REO. In most cases the buyer pays the closing costs. These can vary due to pro-ration of taxes, whether your purchasing the home with cash or getting a mortgage. If you are mortgaging you can ask the seller (bank) to pay a portion of the closing costs in your offer. Most banks allow up to 3% in closing costs. Closing costs can consist of reimbursing the seller for taxes paid in advance, title insurance (if mortgaged), title closing fee, documentation prep, filing/recordiing and transaction fees. As you can see it is difficult to estimate without more information. If you would like further assistance, just send me an e-mail with the property address and the terms of the purchase and I'll be glad to give you a more complete estimate. If you are mortgaging your lender should be able to give you a complete estimate in closing costs.
Karen Paytas, GRI, CMS
Real Living Kee Realty