Need some help. BOA HAFA approved SS and they will only pay 3% in closing cost

 

The bank will only pay 3% in closing cost. The buyer is not willing to contribute to help get this closed.

He had to raise his offer price to meet the bank on the approved price.

I have allready reduced my commission (which is not part of the closing cost). The seller wants to contribute $1000.00 of her HAFA money that she will be getting at closing. I am not getting a response from the lender, if they will allow this. Has anyone else had this issue and how was it resolved. They will give us an approval letter if we can get this down to 3%, we have cut everything we can. We are not even covering back taxes, Doc stamps or title on this one.  Thanks in advance for any ideas or help.

 

 

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Permalink Reply by Becky Martin on October 3, 2011 at 1:31pm
How much are the buyers asking for in closing cost???  Buyer doesn't want the house very much....just curious, why did you reduce your commission if not to contribute to the closing cost?  Yes, they will allow your seller to contribute the HAFA money....didn't you ask for the back taxes, doc stamps, and title ins on your estimated HUD?  BOA usually pays all of that!
Permalink Reply by Jeff Payne on October 4, 2011 at 2:16am
3% should be right on or very close for buyers closing costs.  I rarely see our lender go over 3% unless prepaid insurance premium is very high.  Yes, the  HAFA money can be used.
Permalink Reply by Eric Mieles on October 4, 2011 at 6:51am

What did you use part of your commission for?

Permalink Reply by Virginia Wright on October 4, 2011 at 8:05am

We have a resolution. The bank will not allow the HAFA money to be used. She has to receive her proceeds. She can however contribute cash at closing. My commission was reduced to help contribute the closing cost. Finally the buyer has agreed to pay some money and with my contribution looks like was can get this moving forward.

Permalink Reply by Liane Jamason on October 4, 2011 at 11:54am
For future reference, I never tell the Seller to accept a contract with more than 3% closing costs because the banks just aren't allowing it.  And really, should a buyer be buying a home if he needs a full 6% in closing costs?  I think not...
Permalink Reply by Beverly Cibulsky on October 4, 2011 at 12:59pm

This is a good post!

Let me understand this! HAFA will they allow 3% for the Buyer's closing cost? (not the seller) . Yes, I havent seen any SS that will allow more than 3% to the buyer that is, and would not allow a seller to sign a contract with more (definetly Fannie's max) Have HAFA SSA, but does not mention, or clealy indicates any "Seller/Borrower allowed contributions to buyer. Virginia, are you the buyers agent? Sellers agent? or both? Unfortunately, Buyers that are financing most likely need closing costs, The days of 6% buyer closings cost in almost a thing of the past ( right now anyway) Perhaps these loan officers should explain that to buyers, but dont..... "you can get 6% in closing costs!" but they dont explain "depending if it is an option with the home they are buying" Yeh well another story, all these 6% in closing cost, will cost FHA big time also, if it hasnt already! Little or no skin in the game! Somewhere along the lines, things went seriously bad! Mortgage Broker's were making more money than the real estate agent! Of course we got our closings also! Did the short sale lenders realize this and are trying to stop it now? I am tending to "hope so"!

Permalink Reply by Virginia Wright on October 4, 2011 at 1:44pm

No, the sellers closing cost can not be over 3%. I am not talking seller concessions. I am talking about the sellers closing cost. The taxes are more than the 3%. I have been told I can contribute and the buyer can contribute to the sellers closing cost and the title company can cut fees. BOA will not allow over 3% in seller closing cost. They do not consider commission fees or HAFA part of closing. Just Taxes, HOA fees, DOC Stamps and  title fees. 

They do allow 3% in seller concessions.

Permalink Reply by Virginia Wright on October 4, 2011 at 1:46pm

I am not referring to seller concessions. I am talking about the sellers closing cost on the HUD.

HOA, Title and taxes.

Permalink Reply by Beverly Cibulsky on October 4, 2011 at 2:34pm
Just FYI... Have a HAFA SSA with 11% 6%commission leaves 4% misc Title, taxes, etc! Does not really explain if the 11% includes commission? Does say 6% commission. Anyone one that can shed more light on this we will all appreciate it! Then again, will depend on lender/investor!
Permalink Reply by Beverly Cibulsky on October 4, 2011 at 2:53pm

Sounds like you need to educate them! They are stuck with the taxes even if they foreclose! Ya may want to contact the US treasurey Dept. Sorry dont have it handy, but it is in posts! Just a thought.... Dont give up your commission, we will probably all pay in our Tax dollars!

Hey great point.. I am going to use this in the future!

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