Asking Bank to Pay Closing Cost on REO Sale

[Brandon Johnson]

Does anyone have any experience to be able to say whether a large financial institution would be less inclined to accept an offer on a bank owned foreclosure sale if the offer contained a stipulation that the seller pay all or some of the closing costs?

In my example of a bank owned duplex from a foreclosure that is priced slightly under market, assuming an offer at the asking price plus seller paying all or a portion of closing costs, would that closing cost stipulation weigh negatively on the bank's decision to accept my offer over another offer that is lower than mine on the net sum of the offer even if by only one or two thousand dollars?

Thanks for any input,

Brandon

[Braden Smith]

I'm a Realtor in NOLA and my broker is an REO broker so I am very familiar with the ins and outs of selling and/or buying a foreclosure. The REO brokers don't deal with the banks directly. They deal with the asset management company hired by the bank that has foreclosed on the property. They submit offers to the asset management company and they then decide whether or not to send it up the chain to the bank. If there are multiple offers on a property (which many times there are in our market), then the "cleanest" offer is going to take precedence. Banks don't like to deal with any concessions and/or stipulations and many times they flat out refuse to pay any closing costs just as they refuse to pay for any repairs. The banks and financial institutions that own these REOs are trying to recoup a loss and they will try to force a multiple offer situation in order to get the bids higher. The best offer on an REO is a clean offer... go with your highest and best offer right out of the gate with no buyer concessions and no seller paid closing costs with an all cash offer and a quick close.