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09-07-2008, 11:06 AM
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Humanitarian Vigilante
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Join Date: Jan 2008
Location: Broward County
2,090 posts, read 1,806,543 times
Reputation: 582
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my real estate agent insists that in a short sale, the lender does NOT pay the closing costs. Which is true?
Here we go again with my dumb dumb agent. I read everywhere that in a short sale, the lender pays all the closing costs. He says that is not true at all. What is the truth?
help !
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09-07-2008, 11:21 AM
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Real Estate Marketing Consultant
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Join Date: Jan 2008
Location: Barrington
4,292 posts, read 2,255,028 times
Reputation: 1866
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It all depends.
Some banks will and some banks will not. Much depends on the offer and type of buyer financing.
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09-07-2008, 11:28 AM
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Real Estate Agent
Status:
"Is seeing the light at the end of the tunnel"
(set 6 days ago)
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Join Date: Oct 2007
Location: Salem, OR
4,569 posts, read 2,855,451 times
Reputation: 1729
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If you are talking closing costs for sellers, then yes, it is included. If you are talking closing costs for buyers, then that would be negotiable. It depends on the bank.
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09-07-2008, 11:39 AM
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Senior Member
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Join Date: Jun 2006
Location: Central Florida
759 posts, read 758,222 times
Reputation: 218
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Lenders will pay buyer and seller closing costs IF the price is above what they want to net. It's all about what the lender wants to net. Of course, you still have to sweat out the appraisal!
Lenders will also pay for a home warranty if they get their net. Lenders only care about the net bottom line.
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09-07-2008, 11:40 AM
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Senior Member
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Join Date: May 2007
8,152 posts, read 4,250,173 times
Reputation: 1696
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In the short sale that I bought, the lender paid the closing cost and I paid the buyers side, which was very low since we paid cash. The lender was Countrywide.
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09-07-2008, 11:41 AM
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Senior Member
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Join Date: May 2007
8,152 posts, read 4,250,173 times
Reputation: 1696
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Quote:
Originally Posted by Dee2e
Lenders will pay buyer and seller closing costs IF the price is above what they want to net. It's all about what the lender wants to net. Of course, you still have to sweat out the appraisal!
Lenders will also pay for a home warranty if they get their net. Lenders only care about the net bottom line.
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This isn't completely true since the lender lost big time in the short sale that I bought. |
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09-07-2008, 11:46 AM
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Senior Member
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Join Date: Jun 2006
Location: Central Florida
759 posts, read 758,222 times
Reputation: 218
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Quote:
Originally Posted by bentlebee
This isn't completely true since the lender lost big time in the short sale that I bought.
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I have had lenders pay seller costs for every short sale my company has closed. I have never had them not pay buyer costs if the price on the sale was correct. The same is true for the home warranty. However, every lender and loan is different. I can only speak from my experiences. |
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09-07-2008, 12:00 PM
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Moderator
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Join Date: May 2008
Location: Owasso,Oklahoma
3,405 posts, read 1,777,543 times
Reputation: 925
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We just submitted an offer on a short sale and our real estate agent said since there are alot of other offers on it to make ours more attractive we shouldn't ask lender to pay closing costs and also that we (the buyer) should pay our own home warranty also.
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09-07-2008, 05:52 PM
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Humanitarian Vigilante
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Join Date: Jan 2008
Location: Broward County
2,090 posts, read 1,806,543 times
Reputation: 582
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whats this home warranty thing ? new to me. Unless it's pre-construction, is it common to get a home warranty on a re-sale ? Never heard of it ! Isn't that what a home inspection is for ?
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09-07-2008, 06:13 PM
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Realtor
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Join Date: Aug 2007
Location: Columbia, SC
3,566 posts, read 2,247,508 times
Reputation: 1173
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Go get a decent agent. Even good answers on here are no substitute for training and experience.
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