I hope that helps! Go get em'!
Thanks, Todd Norsted
I really meant it as clarification. Your suggestion that a buyer look into Nehemiah is a good one. I just didn't want a buyer asking a loan officer for the FHA program. We are both telling the client the same thing, just clarification. :-)
As most replies have already stated, banks will pay closing costs, and generally speaking, "they" see it as a normal cost in today's market. If there are two offers, obviously the higher "net sales price" will be more appealing. Do beware of FHA short-sales (when the existing mortg is FHA) as HUD will not pay closing costs...unless there is a "charged back" claim to the lender from HUD.
Also, make sure your lender has a good handle on the amount of closing costs to be asking for and has relayed that to you and your agent, you don't want to leave any monies on the table. If structured properly, any excess can go towards points.
In most cases, closing costs will not make a difference to the bank. All a bank is looking for is its bottom line. However, the least you bring to the table, be ready for the bank to require you to qualify with a specific lender.
I think 5 of my last 6 buyers have gone into bank owned properties and in every situation the bank has been willing to pay some closing costs. As stated in other responses, how much will depend on the offer itself.
As for having two offers, generally the bank takes the best offer and negotiates with that one alone. I have seen recent situations where there have been multiple offers on a foreclosure (4+) and the bank has verbally said to all potential buyers to go back and write your best offer and we will take the best of the bunch. I don't know how often that is happening, but it has happened at least once recently.
A bank isn't any different than a regular seller in the way that they want as much money as possible. Say there are 2 identical offers, one is asking for closing costs and the other is not. You can probably guess what the bank will do in this situation.
Now obviously other factors come into play here. Maybe the offer with closing costs was at the listing price and the other offer was $20,000 below. Other things like home inspections or contingent offers (usually not accepted by banks) will be taken into consideration.
Is your need to get the closing costs covered in your negotiations or simply wondering if the bank would pay them? If it's the former, build closing costs into your offer. If it's the later, I've not seen a bank willing.
Thanks, Todd Norsted