Home Buying in Clinton>Question Details

Mkarikar, Home Buyer in Upper Marlboro, MD

Short Sale closing cost assistance for buyer

Asked by Mkarikar, Upper Marlboro, MD Tue Apr 24, 2012

I recently agreed to a short sale contract with a seller where I receive 4.5% toward closing. (Short sale not approved yet with Citibank). I was wondering if it likely that bank will automatically counter the closing cost % since it isn't the norm that is given out.

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Answers

4
Yes, it is very likely the bank will counter this offer. We will not submit an offer on a short sale with closing help in excess of 3%. An even bigger concern for banks is determining that the proeprty was sold at or very near market price for the current condition of the home. I see many agents listing homes substantially below market value. Banks are getting a lot more savvy about their processing of these transactions and will shoot down deals that haven't been well planned.
1 vote Thank Flag Link Tue Apr 24, 2012
Most short sale lenders will consider "reasonable and customary" closing costs NOT to exceed 3% of the property purchase price.
0 votes Thank Flag Link Wed Jul 25, 2012
Hi Mkarikar:
Laura is correct that the bank will probably counter your offer however it is dependent on the marketplace. There are still some marketplaces in the Washington Metro region that is customary to give more than 3% in closing help assistance from the buyer. This is determined by various factors by the bank and the strongest component is area sales particularly those that ARE NOT DISTRESSED. Check the marketplace for the property you are searching and look at the Fairmarket value homes and see what they are customarily giving for closing cost--most assuredly this is what the bank will offer you perhaps slightly more depending on the condition of the property.

I hope that your loan officer and Realtor primed you for caring for the better majority of your closing cost as this too can be customary in today's marketplace.

All the Best!
Natalie Dean
0 votes Thank Flag Link Fri Apr 27, 2012
Hi Mkararikar,

Laura gave you the correct answer as she usually does on Trulia.

Greg Myers
Re/MAX Realty Group
0 votes Thank Flag Link Wed Apr 25, 2012
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