Profile picture for audi4t 2000

Short sale offer and ask for 3% credit(closing costs)?

We have been looking at short sales in the Santa Clarita valley-San Fernando valley area. I heard about asking for a 3% credit with our offer on standard sales, but was advised to also ask for this in our offer with short sales. I feel like the 3% credit most likely would be declined because the bank is out money to begin with, so why would the bank even approve giving us a credit. What do you all think? Any advice or experience with this?
  • February 07 2014 - Santa Clarita
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Answers (5)

Profile picture for JerodMayer
It never hurts to ask for the credit especially if you need it. The reality is that you can ask for a credit from a "Standard" "Equity" Seller, a "Foreclosure", or any home and the Seller can deny it. I can say that having done hundreds of short sales in our office, and considering the Agent on the other side of the transaction knows how to handle short sales and abides by the proper procedures the decision on whether to give your credit will depend on the investor. In addition to that it will depend on what other offers are on the property. If there are cash offers, or stronger/higher offers not asking for credits then chances are slim because the bank wants a clean offer. As long as your offer is at market value, and even if you would be willing to offer a little more when asking for a credit to show the bank you are a serious buyer you have a better chance at getting them to accept it. 

Nevertheless, don't be discouraged to ask for the credit. Don't worry about the banks position. You didn't cause that problem, and honestly there are too many variables to that just won't make sense. You are just trying to purchase a home so do what you need to do in order to make that happen.
  • February 07 2014
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Profile picture for sunnyview
In this market, most banks will not agree to pay your closing costs. You may try asking for a credit toward close if you use the bank that is selling for the mortgage, but otherwise the answer is likely to be no. Banks prefer clean offers with respectable earnest money and no/few contingencies.
  • February 07 2014
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Profile picture for wetdawgs
One can ask in any sale, but it can also be rejected in any sale (even standard sales). The bottom line counts, but the ability for the home to appraise for the price is also taken into consideration.   It is much simpler to just make a straight offer rather than complicating it with things such as seller concessions.    
  • February 07 2014
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It is definitely harder to get a bank to agree to closing cost concessions on a short sale but not impossible.  You just have to make sure the offer is good enough.  The bank, actually the investor, only looks at the net amount after expenses.  If the net is high enough they will agree.  Just don't expect to get a low price and concessions, it probably won't happen.
  • February 07 2014
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Certainly you can ask. Who is not asking will not getting anything.

Many short sale lenders will approve a 3% closing cost credit.

If you would not need the closing cost assistance than find out if you will stay competitive in your market or if you would loose out to other buyers. 

Talk to a real estate professional who knows the area. Otherwise, I would ask for it, if the say now at least you asked.

Annett T. Block
Florida Connects Inc.
  • February 07 2014
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