who pays closing costs on a foreclosed home?

Asked by Ladybug319, Holland, MI Thu Jul 9, 2009

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Ryan K Kruit…, Agent, Holland, MI
Wed Feb 11, 2015
Usually you can get the bank to pay all the closing costs in the state of Michigan. Ask your agent of lender to look into this for you. Ryan K
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jjeanius, Home Buyer, New York, NY
Fri Dec 5, 2014
We are purchase a foreclosure condo in NYC, the question is who pays for the transfer tax for both NYS and Local)?
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Gregory Saun…, , Atlanta, GA
Thu Jul 9, 2009
More than likely you will pay the closing cost. The banks feel that they have come down on the price of the home. Howver, if your offer called for the seller to pay closing costs and they accepted your offer than the seller pays.
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, ,
Thu Jul 9, 2009
Hi Ladybug,

The answer is...it depends. Normally there are closing costs (cost, sometimes taxes too, for services provided that are essential to the transaction closing. It is customary for the buyer to pay those cost associated with buying the home, such as closing costs to their mortgage, while the seller normally covers the costs of selling the home such as sales taxes.

However, if you are working with a savvy realtor then you may be able to negotiate for the seller to cover some or all of YOUR closing costs for you as well. That more or less depends on the bank selling the home, because some banks will absolutely not agree to pay for your costs (although like Annette said they may reduce the price instead)
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Annette Aber…, Agent, Hickory, NC
Thu Jul 9, 2009
We purchased a foreclosure home last June and we did pay the closing cost however the bank that had the foreclosure did come off the price 10,000 dollars! I hear that alot of times banks or mortgage companys will not budge to much on the price, so I think if you can get them to come off the price some this helps in covering the closing cost!
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Michael Thom…, Agent, Lambertville, MI
Thu Jul 9, 2009
There's no set answer to this...you have to watch the disclosures, and terms of a listing pretty carefully--I always advise clients writing offers on bank owned homes to be specific in the offer on what (if any) closing cost they want a bank to pay. Traditionally, sellers pay Michigan's transfer tax, purchase title insurance for the buyer, and if home is listed the real estate commissions come off the sellers side.
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