Short Sale SellersClosing Costs in Short Sale Deals
Is it possible to get closing costs included in a short sale deal?
Once a bank has approved a short sale they will be making an effort to get back every penny, thus the chances of closing a deal with closing costs included can be quite small. In today’s market, the approval of closing costs as a cost to the seller is decreasing quite a bit through the housing market since the seller cannot afford the out of pocket expense, the bank is already selling a short sale property less than the mortgage owed, and the logic if the buyer cannot afford the closing costs, then they shouldn’t be buying a home.
Although, if you are determined in trying to get your closing costs covered, the key is to knowing what the BPO (Brokers Price Opinion) is and what the banks are looking for as a return percentage from the BPO. If your purchase price and closing costs keep the bank in the range you may get a contribution. Each bank is different. You can get your closing costs covered if you can convince the bank that it makes sense in the numbers.
Typically, in most cases, closing costs and inspections are paid all by the buyer as most, if not all, short sales are generally sold “as is”. A buyer in today’s market doesn’t get too many of their wants or needs met in a short sale deal, other than arguing for a good purchase price.