Who pays what cost (buyer/seller) in the purchase of a bank owned foreclosure property?

Asked by Dynasti Otis, Vinton, IA Mon Jan 23, 2012

We are currently looking to buy a bank owned foreclosure, the closing cost seemed super high so I'm curious as to what is negotiable for the seller to pay and for us to pay as buyers. Plus, since its a bank owned sold "as-is" property shouldn't the inspection be voided?

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Robert D Hug…, Agent, Devon, PA
Tue Jan 24, 2012
Dynasti, Never void your opportunity to inspect a property. Although the bank may state they will do no repairs or credits in these transactions, best to protect yourself. Better to know up-front what you are buying. Only exception is if you or people around you are qualified contractors who can attest to the current condition of the property.

As Tina stated, you can always try and negotiate, just don't get your hopes up.They are not keen on incurring any more expense they they already have.

Good Luck to you,

Rob
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Tina Lam, Agent, San Jose, CA
Mon Jan 23, 2012
With a bank owned foreclosed property, you should expect higher closing costs a buyer than with a regular seller. Banks are already taking big losses on the foreclosure process so they are unwilling to pay for the conventional closing costs like title transfer insurance, inspections, certain document fees, or home warranties. You can try to negotiate but the bank will most likely just reject your offer and wait for the next buyer who's willing to cover all the closing costs. Since a typical purchase would incur about 1-2% closing costs, before financing costs, you should expect about 2-4% with a bank owned property. But, in consideration of the discount you're getting, that's not a bad deal to strike.
Web Reference:  http://www.archershomes.com
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