Wednesday, May 6, 2009

Countrywide/Bank of America Short Sale Closing Costs

As a short sale listing agent in the Destin Florida area, I tend to get the same type of offer again and again. The buyer asks for all closing costs to be paid by the short sale lender. So, on the most recent offer on one of my short sale listings, of course the buyer's agent pressed for having Countrywide, now Bank of America, pay all the closing costs. I have been through this numerous times before. The agent tells me they "had one case" where all the costs were paid. Or they say they "heard" the short sale lenders would cover all the costs if the offer price was raised. I have to always leave the final decision to my seller, but I recommend against going down this path.

To placate this agent, I emailed my favorite Bank of America negotiator, specifically asking what closing costs would be paid. This is her response:
"We pay all outstanding property taxes, commission (amount depends on loss and investor), $3,000 to any outside 2nd lien, settlement or escrow fee, title insurance, doc stamps. We typically do not pay any miscellaneous type fees (wire, courier, admin, doc prep, notary, home warranty, etc.). All fees are negotiable depending on the loss and investor and is up to each individual negotiator as to what fees will be paid. It is also at management's discretion when a decision is made."

At the insistance of the buyer's agent, who asked if the buyer could increase his offer price to "cover" more closing costs, the Bank of America negotiator said: "No, they usually still will not pay those items."

99% of the time, if you submit a short sale offer asking for all the closing costs to be paid, you will get rejected or countered. Why waste sixty to ninety days for nothing? Submit a good offer, one that you know can get approved, and increase your chances of short sale success.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Destin Florida Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Destin Real Estate Blog

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Blogger mike said...

Hi Wendy, thanks for your comment ...I too am inandated (In fact just 10 minutes ago) with this banter many times a week. Can I maske you a deal ...can I steal your quote and use and I'll send you my "NO RELIANCE ON CLOSING COSTS CONCESSION" form?

December 12, 2009 at 12:41:00 PM CST  

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