Replies to This Discussion

Permalink Reply by Steele V. Propp on November 30, 2010 at 10:28am

A seller can make conditions. ( I don't see where this is illegal but I am not an attorney.) Your buyer can then decide to follow them or not buy the house. But I would simply question "why?" Maybe it's a policy thing that they can't change or maybe it's misinformation on their part and you can educated them.

I have to admit that this is a new one.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on November 30, 2010 at 10:39am

Well, that's an intersting one..... Remember, the bank, in this case BofA, is attempting to settle the debt at terms that are acceptable to the Investor who owns the loan. I think they have given you some direction on how to get your transaction approved. They have told you their acceptable settlement price is $213,000. If you want closing costs, they will be able to approve that on an FHA / VA loan only. So they have given you the secret key to getting your deal closed. You just need to see if the buyer is willing to accept the terms.

Again, BofA is NOT approving the sale, they are approving the Debt Settlement Terms.

Best of luck,

Thom Colby
Broker,
Newport Beach CA

Permalink Reply by Wendy Rulnick on November 30, 2010 at 12:20pm

Oskar - They are under no obligation to pay any buyer's closing costs.

Permalink Reply by Tracey Martin on December 2, 2010 at 9:23am

Several negotiators, from different lenders, have told me that they will only approve closing cost credit for government loan borrowers. My guess is that they are not allowing the credit because they they see FHA or VA borrowers as special or more deserving; I think they allow it because they feel they must. After all, the government did bail them out. I am almost certain that if they thought they could get away with it, they wouldn't give anyone credit for closing costs.

Permalink Reply by Oskar M Jonsson on December 2, 2010 at 10:13am

Thanks for all the replies. I called the negotiator directly and was trying to explain to her that if they lowered the price to $208,000 and my buyer would pay for their own closing cost, the investor would net more with that than selling the house at $213k and paying for my buyers closing costs. I'm not sure if she understood that.........but she asked that this would be entered into the equator program. Still waiting for a respond.

Permalink Reply by Jeff Payne on December 3, 2010 at 6:43am

Tracey, not so sure that what they are telling you is the truth. We have closed alot of short sales with alot of the major lenders and have gotten closing costs paid for on non govt loans.

Tracey Martin said:

Several negotiators, from different lenders, have told me that they will only approve closing cost credit for government loan borrowers. My guess is that they are not allowing the credit because they they see FHA or VA borrowers as special or more deserving; I think they allow it because they feel they must. After all, the government did bail them out. I am almost certain that if they thought they could get away with it, they wouldn't give anyone credit for closing costs.