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If you are FHA or VA, most of banks (actually investors who are approving short sales) are happy to give buyers up to 3% credits, but in this competitive market, if you ask for closing costs credit, the seller may not accept your offer. Never ask for credits if you are conventional loan buyers. Even seller may accept your offer, most of short sale banks (investors) won't allow. Short sale banks are mostly just servicers and need to follow their investors guidelines for approving short sales. If your agent is expert in short sale, she/he can find out if the loans are owned by Fannie Mae or Freddie Mac, or non-GSE and give you clear guideline on your offer. My suggestion: Make a very clean offer. Ask your agent to follow the listing agent's offer instructions. Many agents can't follow instructions and even it is the highest offer, it will be rejected by seller. Your agent needs to know how to make a clean and strong offer.
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