Replies to This Discussion

Permalink Reply by Bryant Tutas on April 16, 2012 at 1:07pm

Charita. Rarely will a lender pay more than 3% in buyer's closing costs. We always recommend not to negotiate any more than 3% in the contract. You will more than likely not get an exception on this. I would concentrate on helping the buyer find the money to close without the extra 3%.

I hope the seller doesn't get foreclosed on over this. This is agent error. But now you know :)  And remember if it's an FHA short sale they will only pay 1% and then only if the buyer is getting FHA financing.

Of course there are exceptions to all rules.

Permalink Reply by Charita Cadenhead on April 16, 2012 at 1:14pm

Bryant you know better than me but I hope there is an exception.  I have been working with the buyer's lender on this and it's just not happening without more than 3%.

Permalink Reply by Bryant Tutas on April 17, 2012 at 12:45am

There are exceptions to most things but this one will be difficult. If you are working for the seller then you need to start looking for another buyer if the one on the table can't close without the 6%. Maybe work both angles at the same time since time is of the essence. The reality is that buyers that need 6% in concessions cannot buy short sales. It's way too risky for the seller.

Let me know if you are able to get it sorted out.

Permalink Reply by Charita Cadenhead on April 17, 2012 at 1:58am

Bryant I've never stopped looking for a buyer.

Permalink Reply by Jeff Payne on April 17, 2012 at 1:51am

WHy does the buyer need so much in closing cost assistance?  Seems quite high, we rarely see over 3% needed and that is usually on lower priced homes that need more

Permalink Reply by Charita Cadenhead on April 17, 2012 at 1:59am

Actually Jeff, the buyer could use 4.5% closing cost, but that's moot if the bank will only allow 3%.