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Okay, so, I'm somewhat confused. We are looking at houses, and I'm a little dismayed to find that many (if not most) in our price range that are in our area are short sales. We are coming to the table with a down payment, but can't afford to do both that and closing costs, and so we were somewhat relying on the ability to roll closing costs into our purchase price (we are preapproved for a FHA loan).
I have read in numerous places that lenders will absolutely not entertain the idea of paying closing costs on a short sale, which makes sense. I've also read in numerous places that in this market, this isn't the case anymore, which also makes sense. Our agent tells us that lenders will not pay closing costs as a concession, but we can offer to pay over listing price with the difference being placed in escrow for closing.
What sounds right? Is it folly to hope that we might be able to do this, or should we go ahead and try to make that sort of offer if "the one" happens to be a short sale and we have the patience to try and get it?
What closing costs do you mean. Do you want to have the lender pay for your closing costs as well? I hardly had closing costs since I paid cash, but I don't really know but I don't expect a lender to pay for your closing costs! On the mortgage forum there is a thread about closing costs paid back at closing, maybe you can get some answers there.
I'm talking about buyer's closing costs. I am told by both my mortgage lender and my Realtor that it is fairly common to offer 5k or so above a listing price (or 5k above what your normal bid would be), and have that 5k then be paid back (by way of being put into escrow) as closing cost assistance... on straight sales and REOs. My question is whether that might be an acceptable offer on a short sale. I've heard completely conflicting answers on it and am thoroughly confused.
Last edited by AuburnJack; 04-01-2008 at 06:25 PM..
Reason: clarification
It actually depends on the bank. Some will, some won't. Some won't even pay the typical sellers closing costs. All depends on how it is presented and who the bank is.
Sorry I can't be of more help, but there just is no one way to do a short sale.
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