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Old 05-25-2010, 01:15 PM
 
1 posts, read 7,307 times
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As a seller of a potential short sale property, I have just been presented an offer that stipulates $5,900 be paid by the seller to cover: Closing costs, Prepaids, and discount points for the buyer.

Since I am hoping to sell my home as a short sale, I understand that the bank is ultimately the one who will be paying the amount. However, as a seller, should I agree to this?

My realtor has stated that I should remove any personal emotions from the decision and just sign the agreement. I checked my emotions at the door a long time ago since I have been trying to sell my house for 3 YEARS (yes, three years!), but also realize he has a invested interest in the house closing regardless of who pays closing costs.

Experts - please provide input. The loan and home equity loan are both through Wells Fargo.

Thank you!
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Old 05-25-2010, 02:05 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,912,562 times
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Your agent is in a better position to advise you than anyone here. I'd be inclined to submit the offer if it is your only offer so far. At least it would get the bank working on your file to move things along. At this point you may not even know if they will allow you to short sale.

The bank will consider the closing costs when they calculate their net $ from the offer, then make a decision.
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Old 05-25-2010, 02:53 PM
 
Location: Just south of Denver since 1989
10,903 posts, read 29,383,051 times
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A lot depends on what type of loan you have. But yes get it done, the lender will counter if not acceptable to them.
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Old 05-25-2010, 08:05 PM
 
Location: Columbia, SC
9,071 posts, read 18,068,318 times
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You should do whatever gets you a contract to the bank that is the best you can negotiate.
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Old 05-26-2010, 08:07 AM
 
9,738 posts, read 8,054,993 times
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Quote:
Originally Posted by mnseller View Post
As a seller of a potential short sale property, I have just been presented an offer that stipulates $5,900 be paid by the seller to cover: Closing costs, Prepaids, and discount points for the buyer.

Since I am hoping to sell my home as a short sale, I understand that the bank is ultimately the one who will be paying the amount. However, as a seller, should I agree to this?

My realtor has stated that I should remove any personal emotions from the decision and just sign the agreement. I checked my emotions at the door a long time ago since I have been trying to sell my house for 3 YEARS (yes, three years!), but also realize he has a invested interest in the house closing regardless of who pays closing costs.

Experts - please provide input. The loan and home equity loan are both through Wells Fargo.

Thank you!

What makes you think the bank will be eating these closing costs? I would assume that YOU would have to be paying the $5900 out of your own pocket. The bank has already taken a haircut on the selling price of the home.
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Old 05-26-2010, 10:31 AM
 
Location: Just south of Denver since 1989
10,903 posts, read 29,383,051 times
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The servicer will allow these costs and all others as being true costs to close as reported on the estimated HUD1 form- and look at their net. If it meets guidelines it will get approved. If it does not they will counter, or reject.
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Old 05-26-2010, 11:51 AM
 
Location: Columbia, SC
9,071 posts, read 18,068,318 times
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Quote:
Originally Posted by kevinm View Post
What makes you think the bank will be eating these closing costs? I would assume that YOU would have to be paying the $5900 out of your own pocket. The bank has already taken a haircut on the selling price of the home.
They look at a net and not so much where the money goes. Banks will absorb closing costs the majority of the time.
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Old 05-26-2010, 02:42 PM
 
4,791 posts, read 11,966,331 times
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Quote:
Originally Posted by Brandon Hoffman View Post
They look at a net and not so much where the money goes. Banks will absorb closing costs the majority of the time.
....
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Old 05-26-2010, 05:11 PM
 
Location: WNY
1,049 posts, read 3,484,115 times
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Quote:
Originally Posted by Brandon Hoffman View Post
They look at a net and not so much where the money goes. Banks will absorb closing costs the majority of the time.

really? I have not seen that stated - normally the seller pays the closing costs, even if it goes into foreclosure, which would be worse
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Old 05-26-2010, 10:26 PM
 
Location: Columbia, SC
9,071 posts, read 18,068,318 times
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Quote:
Originally Posted by CAugust View Post
really? I have not seen that stated - normally the seller pays the closing costs, even if it goes into foreclosure, which would be worse
I think you didn't understand my post. The bank that holds the lien will look at the net offer. If the net meets an amount they can approve, they will usually pay up to 3% cc. Of course it's going to come off the net of the seller side, but it isn't money the seller has to pay out of pocket.
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