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Let's say the offer is right at the appraisal. Would the mortgage company do it to make the sale? Does this ever happen? Let's say closing costs are about $4k.
Mortgage companies are the reason some deals fall apart and they don't seem to give a rat's butt about it either. I can't imagine them doing anything to help a deal along like picking up closing costs.
Let's say the offer is right at the appraisal. Would the mortgage company do it to make the sale? Does this ever happen? Let's say closing costs are about $4k.
Varies a lot from lender to lender. I have seen lenders on short sales willing to pay $0 of buyer's closing costs, 1%, 3%, all the way up to all normal and customary buyer's closing costs (ie they won't pay to buy down the loan or anything, but will pay everything else).
There are also sometimes seller's normal closing costs they absolutely won't pay. Some of them won't pay any outstanding HOA dues, or anything on any liens past the 2nd, which usually gets either $3000 or up to 6% of the outstanding payoff balance. Some of them won't pay outstanding utility bills. Some don't care about anything but the final net, and it doesn't matter what they pay, as long as the net meets their guidelines.
It really is a gamble, and you never really know what they are going to approve until you get near the end of the process.
FHA short sales will pay 1% in buyers closing costs for new FHA loans.
VA depends on offer vs. appraised value.
Conventional loans depends on the investor.
It depends on what is tradition in your area and what the bank's bottom line is. Many short sales are paying $3k, 4K, even $5k for closing costs. If it doesn't hit their bottom line, they counter the number. It's not like the bank just says "No". They say, "Terms look good except..." and the buyer has the opportunity to change their offer.
FHA short sales will pay 1% in buyers closing costs for new FHA loans.
VA depends on offer vs. appraised value.
Conventional loans depends on the investor.
When we submitted our short sale offer (List price $265k) - our offer was $240k plus $6400 in closing costs - we received a counter offer of $245k from BOA with closing costs paid. Not sure if it's going to "pass" with the investors, but that's where we stand right now.
When we submitted our short sale offer (List price $265k) - our offer was $240k plus $6400 in closing costs - we received a counter offer of $245k from BOA with closing costs paid. Not sure if it's going to "pass" with the investors, but that's where we stand right now.
Nelly - how long has it been since you got your counter offer and was it in writing?
Reason why I ask is because we were told verbally that the bank wanted more to consider our offer, we raised our price, and we still haven't heard anything since then. Thanks for any feedback.
You can always buy up points to cover closing, but in the long run you're going to pay a lot more for closing costs.
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