need advise on a short sale. and closing cost?

Question

fell in love with this house in short sale. asking 299,999.

Im approved for 350,000

I crunched the PTI and I don’t want to pay more than 280,000. my realtor checked the comp’s and the house priced reasonalbly. She said if i can come up with the closing cost it would help. I was going to put down a offer of 275,000 and have closing cost included. what are the banks point of short sale and i really don’t want to pay the closing cost. any reconditions?

Answer 1

You won't be buying this house.

I doubt they will even counter offer. They will turn this down. Your agent doesn't have a clue if they did not tell you that this would not fly.

Answer 2

I have been doing short sales for some time now. Is it the bank doing the short sale or is it the seller of the house doing it. The price of 299K is just the asking price. You bid what you want. I typically pay all my buyers closing costs if the deal makes sense and if they use my mortgage broker. This way i am fully aware of all surprises and it attratcts buyers when i tell them i will pay those costs. But back to you question. You have no idea what details they have worked out with the bank. For instance this was my last short sale. House worth 350k there was 100k in equity in the house. i was able to work the bank down from 250k to 200k. That ment there was almost 150k profit less other payments. I could of asked for 325k but if someone came in with 300k i prob would have accepted just to flip it quickly. So go nuts. The ball is in your court. You have nothing to loose but everything to gain.

Answer 3

There are several ways to do that. The first one is the one most used and most deals are closed with seller paying the closing cost.The other one is to have the seller on a personal deal cut you a check back after closing (under the table ) for the closing cost. One other way is to make sure your mortgage broker and or real estate agent have cut there commission down to a fair profit as the points are made from the fees and the rate ..Just make sure your getting the beast deal from both and that alone will save you enough to pay closing if you have to. Just make it simple though its pretty standard for the seller to pay closing cost just make you offer based on that. Good Luck

Answer 4

there is no harm in asking for what you want to make the deal work for you.

and be prepared -- lenders hate to come out of pocket [pay cash in] on a deal where they have no upside at all. {the mortgage servicing firm has to get permission to do this from the actual loan owners -- might be 45 or 60 days just to get a response.}

***
here's how to maybe give them an upside -- if your approval is from a different lender, give them a copy of it [including the APR and good faith estimate parts] and offer to let them make the loan instead of this other firm at the other firm's rates. Since that gets them a new, good loan with zero marketing cost and very low closing costs [they might do much of it inhouse with people on salary instead of paying commissions to people] maybe they'll give some on the closing costs end.

{The fee to the then unneeded outside closing agent is included in the closing costs and they can probably get the appraisal and title insurance at wholesale, or even avoid all of that by reworking the existing loan to substitute you for the original debtors.}

there is no harm in asking

Answer 5

You're going to have trouble--I would see where the seller stands before asking these questions. It's been my experience that you're going to need to either ask them NEAR the asking price for them to want to pay for closing costs, or inquire about closing costs and see how much you would be looking at.

If you can get the house for $275K and have only $7K worth of closing costs, that's going to be a better deal for YOU then paying $300,000 and have it taken care of. It's convient, but it's not going to be beneficial in the long run.

Answer 6

Your Realtor should be answering these questions for you....