After 7 Months offer finally accepted!! Question Now?

[Ciro LoCascio]

Hello Guys,

After a long 7 months my offer was finally accepted on a short sale. But after receiving the approval letter from the bank I have a question regarding the numbers below. My cash offer was $94k and I understand the commission of 6% but why is the closing cost at $6,356.50 when they wont be anymore than about $2000 including transfer taxes? Is that money allotted for after my home inspection is done and used for any major repairs? Or the bank just saying thats the max they will use for any closing costs? Any help would be greatly appreciated?

[Wayne Brooks]

What you're seeing above are the numbers from the approval letter from the lender. The bank doesn't Charge closing costs, they are paying them, and these are only the closing costs on the seller side of the HUD. these don't include Your closing cost on the buyer side. These numbers are from the HUD submitted to them by whoever is negotiating the short sale. They may include a contribution to your closing costs, if your purchase contract requested it. You need to see the actual submitted HUD to understand what they are, and what your closing costs are. Some negotiators in order to get paid their fee, if they are charging one, will submit the HUD with the bank paying part of your closing costs, then You pay the negotiation fee on your side of the HUD with the monies rebated to you. There's nothing wrong with that, I've done it many times, but the closing costs rebate should have been in the contract or an addendum that you signed, with a separate disclosure that you would pay the fee. Some guys submit fake addendums to the bank to accomplish this, but that's a whole different issue. You have to see the HUD, there may have been back HOA dues to cover.