Short Sale Closing Costs
Does the buyer always pay ALL closing costs on a short sale? If not, would the seller or bank pay? and who pays for all the stuff BPO, etc that the bank orders when trying to SS.
Thanks
Tim
[ Edited by bgn2fsh on Date 07/13/2003 ]
BPO's are generally Free to you (paid by the bank).
Due to the nature of short sales, you'll generally pay all closing costs. Doesn't mean that you have to, but your taking someones equity and generally they are strapped for cash. Like any deal, you can structure it however you would like.
The offer I made on a short sale was recently rejected. They refuse to pay any closing costs and are standing firm on the asking price, which they claim is already way below market value. However, the house will go into a full foreclosure at the end of the month. Is it common for the PMI company to accept less than the asking price even if I agree to pay my own closing costs?
Zoraida:
The asking price may or may not reflect the perceived fair market value of the property. Your goal is to paint a picture to the bank that your version of FMV is better than theirs.
J