Asset company wants closing costs breakdown before signing approval

I have been working on a BOA HAFA since Nov. 2010.  Approved short sale price is $80,895.  A buyer has offered $83,000, and has asked the seller to pay $3,000 in closing costs.

Asset company says net is good. (Buyers attorney prepared HUD prelim.)  But she needs to have the $3,000 in closing costs itemized, because BOA won't pay certain costs. Actually the buyer is paying most of the closing costs by rolling them into the loan.

The buyers attorney is trying to get the closing costs from the buyers lender, but it has been over a week and nothing.

I am irritated, the seller is irritated, the buyers agent is irritated, the buyer is irritated.  Is this normal?  Would it be the same scenario, if the buyer had offered $83,895, and asked for $3,000 in closing?

Any advice?

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Permalink Reply by Cameron Piper - Keller Williams on April 17, 2011 at 2:51am
Advice: patience
Normal: no

I typically only submit seller side HUDs, and in fact, my last two B of A transactions that is all they have gotten and both were approved and closed with seller side HUDs.

This might be an investor specific requirement or it could be something the negotiator is looking for. Either way, your going to have to submit it or not close the short sale.

Cameron Piper
Coldwell Banker Burnet
Permalink Reply by Bryant Tutas on April 17, 2011 at 2:55am
Karen. I would pull the costs off the GFE (Good Faith Estimate). These have to be within 10% of the actual costs. The final HUD may vary slightly but the GFE figures should be close enough to submit for approval.
Permalink Reply by John Ayala on April 18, 2011 at 5:43pm

Keep in mind - HAFA is a gov't program and held to their limitations.  regardless of net to the bank or what bank it is - its HAFA - there may be limits - in percent of purchase - that may be available because of the program. 

 

I had a HUD SS where the buyer wanted a 1K concession and HUD said no because the buyer wanted to buy via VA loan but would give 1% if the buyer went FHA.  Atthe same time, HUD lowered the price over 50K - go figure.

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