REO: Who responsible for these huge comissions and fees (agent, commission, sales)

[vkazman]

Hello,

I am in the process of buying a REO in NYC. What a painful experience
May be experienced guys on this forum explain me who is responsible for these fees - me as a buyer or somebody else (hopefully)

The lawyer received E-mail from a Closing Coordinator, along with a sign contract, and forwarded it to me about two weeks ago. He never discussed these fees and I assumed first that it is not my responsibility. Now I am in doubt.


Here are the fees:

2.5% commission to Buyers agent

2.25% commission to the listing agent

1% Servicing fee to (name of the REO broker company represented by the closing Coordinator):

Referral Fee to (name of the REO broker company represented by the closing Coordinator) $1,100.
:
Prelim. Title report to (name of the title company): $575.00.

Attorney fee to (name of the Closing Coordinator): $700.00.

Closing Coordinator represent the Seller.

The E-mail says, "Since we have a corporate client we do request a HUD statement (even on CASH Sales) at least 24-48 hours in advance of the closing so we can be sure to obtain an approval for you in time for the scheduled closing. In most cases it does take at least 48 hours to obtain HUD approval from the time the HUD is correct after any necessary revisions. Please also include the tax proration’s on the HUD as well as any final water invoice or HOA invoice needing payment."

and also "
Upon HUD approval from our client we will e-mail you the signed HUD and Wiring instructions. No originals will be received.
You may also include a wire fee to your office


I am your closing coordinator and contact person for this property and I can be reached ..."

I would like to get info in this forum prior talking to the lawyer.

Thank you a lot

[rjrcm]

Your lawyer and/or agent are the best sources to address how fees are allocated in your sale. It can vary depending on the terms of your contract with the selling bank. Typically, the bank will pay the agent commission fees (both listing and buyer's agent).

[middle-aged mom]

Sounds like you have a combined HUD. Pay attention to the buyer versus seller columns.

All of these sound like typical seller expenses.

Your agent and/or attorney can walk you through the document.

[chaotix]

Expect to pay ~7% of purchase price in closing fees in NYC, if financing(ouch), buyer pays loan fees, recording/transfer fees, title fee, attorney fee, property taxes, insurance, and other little misc. items, otherwise, if it's a cash deal, all of the above except loan fees, ~5.5 . . .Seller (in this case the bank) pays realtor commission

[pghquest]

Most of the fees you've listed, is customarily to be paid by the seller at closing, however you as the buyer are the one paying them, but its built into your sales price.

That being said, every fee which relates to the closing is negotiable as to who will pay the bill..

[chaotix]

Originally Posted by pghquest

Most of the fees you've listed, is customarily to be paid by the seller at closing, however you as the buyer are the one paying them, but its built into your sales price.

That being said, every fee which relates to the closing is negotiable as to who will pay the bill..

Closing costs/settlement fees and who pays for what, vary across the country, unless the closing/settlement fees are negotiated into offer, buyer pays bulk of closing costs in NYC.