Mar
17
do sellers pay closing costs in short sale homes?
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wolf68 asked:
We are first time home buyers in Nebraska. We are looking at a house that is short sale and were wondering if the seller usually pays closing costs for the house?
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We are first time home buyers in Nebraska. We are looking at a house that is short sale and were wondering if the seller usually pays closing costs for the house?
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Kansieo.com
Not usually since they are already in hock with the balance left after the short sale.
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Rarely will a bank pay costs, or give money back at closing on a short sale.
Kansieo.com
it never hurts to ask, but it’s very doubtful. the sellers are not making a profit as it is and any offers must be bank approved. if you really want the home (and it’s already a great deal), i wouldn’t push my luck by proposing that.
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That would be based on whether the bank wants to accept those terms. You would put in your offer that they would pay for such and such amount of selling costs, and they would make a decision whether they wanted to or not. This is a good way to get your offer rejected.
Basically, short sales are a big enough pain as is, and you want to add as little b.s. as you possibly can. Asking for things like paying closing costs, repairing things, contigency on selling your house all make your offer much less attractive to them. Your best bet is a cash offer with no frilly clauses. Just past that, an offer with a pre-approved mortgage and no frilly clauses stands a decent chance.
If you love the house, and you can’t afford to pay closing costs, make the offer, and see what happens. However, if you can’t afford that, you may want to rethink how much you can afford to buy a house altogether.
Remember that, while buying a short sale, you can expect to wait very long periods of time for anything to get done. Anything less would be a big surprise. It’s also entirely possible that the short sale will never close, and the house will move to foreclosure. Unless getting that house is a necessity (rather than a nice find), it may be worth looking at your other options.
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of course they will pay.
If you wanted to pay $200,000 for a home you would offer $205,000 and ask that seller pay $5,000 in closing costs.
it is all the same to seller. They received a $200,000 offer. No one cares how it was structured.
The buyer’s lender will restrict the % of closing costs that can be paid by seller.
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Yes they will. I just closed a short sale purchase and my client received over $6,000 from the seller to cover closing costs.
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95% of my short sales, the lender agrees to pay up to 3% of the closing cost. The only reason why closing cost get denied on my short sale is that some investors holding the note, do not approve of closing cost regardless if they are netting the numbers they need or not. some investors will only pay closing cost if the buyer is getting a FHA loan (go figuire)!