Replies to This Discussion

Permalink Reply by Anna on June 23, 2010 at 1:12pm

There is no such thing as verbal approval. Listing agent needs to present counter offer from Bank of America that will show that closing costs are not covered. Now, the tricky part is to respond to counter and not lose the sale. Listing agent can contact negotiator directly by phone e-mail or through messages in equator to get understanding of how negotiable closing costs credit is. My experience with Bank of America has been that they can be very unrealistic of market values. If the issue with closing costs credit is bottom line to the investor request value review by submitting independent appraisal. Good Luck!!

Permalink Reply by Kyle Souza on June 23, 2010 at 1:29pm

Most of the investors won't pay seller credits unless it is FHA or VA loan.

Permalink Reply by C on June 23, 2010 at 3:39pm

According to the seller's agent, the negotiators reasoning is: if we have enough money for a conventional loan, then we have enough money to cover closing. What??? Can I ask to have this escalated to this persons supervisor?

Can we lower our offer to reflect no closing costs without having the transaction closed?

Permalink Reply by Jim Hale on June 23, 2010 at 11:43pm

Here: Asking for closing costs on FHA is common. Asking for closing costs on conventional loans is rare. Most sellers - let alone a lender - would be resistant. Your seller was likely not resistant. But s/he was not expecting to see any of the difference affecting his/her pocket either. The lender is.

Permalink Reply by Bryant Tutas on June 24, 2010 at 12:07am

C. I get BofA to pay closing costs all the time. It is quite normal in my market area for a seller to pay 3% in buyer costs. The listing agent can push this issue.

Permalink Reply by Kim Carlson on June 24, 2010 at 3:04am

I have a conventional sale and B of A just approved the closing costs...

Permalink Reply by Julie R. on June 27, 2010 at 8:05am

Congratulations Kim. How did you get BOA to pay the closing costs on a conventional loan. I am a buyer who just receivd BOA's approval letter on Saturday and would love to have BOA pay all or part of the closing costs, especially since I learned that the property needs termite fumigation. Any suggestions? Still aiming for 6/30 close.

Kim Carlson said:

I have a conventional sale and B of A just approved the closing costs...

Permalink Reply by C on June 27, 2010 at 9:47am

After calling everyone I could think of involved in this deal, I was told that this is the investor's policy to not pay closing on conventional loans. I am assuming this loan is through Freddie Mac but have not been told this for sure.

We accepted B of A's counter just to keep the file active and hope to renegotiate a price after the appraisal. If anyone has information to get Freddie Mac to cover closing, any advice would be appreciated.

Permalink Reply by Bryant Tutas on June 27, 2010 at 11:40am

Julie. Your request for closing costs assistance would have needed to be in the contract between you and the seller and the figure would have needed to be on the preliminary HUD statement when the short sale was submitted. If you have just now received the approval you are a little too late to throw this into the mix at this time. The short sale would have to be resubmitted. Most you could get anyway would be 3% of the contract price.

Julie R. said:

Congratulations Kim. How did you get BOA to pay the closing costs on a conventional loan. I am a buyer who just receivd BOA's approval letter on Saturday and would love to have BOA pay all or part of the closing costs, especially since I learned that the property needs termite fumigation. Any suggestions? Still aiming for 6/30 close.
Kim Carlson said:

I have a conventional sale and B of A just approved the closing costs...

Permalink Reply by Julie R. on June 27, 2010 at 4:55pm

Thank you Bryant, for this reply, and for co-founding this site. After nearly walking away, the escalations have given way to a possible close on 6/30. The only remaining obstacles are whether the selling agent can obtain the HUD-1 back by Wednesday and whether the County will record on the same day. Other than that, it looks like I just might be a first time home owner after all and be able to put my flag out for the 4th of July. =)

Bryant Tutas said:

Julie. Your request for closing costs assistance would have needed to be in the contract between you and the seller and the figure would have needed to be on the preliminary HUD statement when the short sale was submitted. If you have just now received the approval you are a little too late to throw this into the mix at this time. The short sale would have to be resubmitted. Most you could get anyway would be 3% of the contract price.

Julie R. said:

Congratulations Kim. How did you get BOA to pay the closing costs on a conventional loan. I am a buyer who just receivd BOA's approval letter on Saturday and would love to have BOA pay all or part of the closing costs, especially since I learned that the property needs termite fumigation. Any suggestions? Still aiming for 6/30 close.
Kim Carlson said:

I have a conventional sale and B of A just approved the closing costs...

Permalink Reply by Bryant Tutas on June 28, 2010 at 12:08am

That's awesome Julie. Come back on Wednesday and let us you know you were successful.

Julie R. said:

Thank you Bryant, for this reply, and for co-founding this site. After nearly walking away, the escalations have given way to a possible close on 6/30. The only remaining obstacles are whether the selling agent can obtain the HUD-1 back by Wednesday and whether the County will record on the same day. Other than that, it looks like I just might be a first time home owner after all and be able to put my flag out for the 4th of July. =)

Bryant Tutas said:

Julie. Your request for closing costs assistance would have needed to be in the contract between you and the seller and the figure would have needed to be on the preliminary HUD statement when the short sale was submitted. If you have just now received the approval you are a little too late to throw this into the mix at this time. The short sale would have to be resubmitted. Most you could get anyway would be 3% of the contract price.

Julie R. said:

Congratulations Kim. How did you get BOA to pay the closing costs on a conventional loan. I am a buyer who just receivd BOA's approval letter on Saturday and would love to have BOA pay all or part of the closing costs, especially since I learned that the property needs termite fumigation. Any suggestions? Still aiming for 6/30 close.
Kim Carlson said:

I have a conventional sale and B of A just approved the closing costs...