I did not initially know I should bring cash to the closing of the relinquished property to cover "non-exchange" costs such as security deposits and prorated taxes, insurance, and prepaid rent.

I had a question regarding getting a FHA 203K rehab loan the property I am wanting to purchase was built around 1945 ( there is no Lead Paint ) as far as I can tell This is a distressed property , and needs around $20,000 - $25,000 in repairs done ( new roof, new A/C unit, painted inside and out, all new flooring, Bathroom remodeled some and the same with the kitchen, some electrical work ) The property is in a Trust , and my Mother is the Trustee of the property ( is was my grandmother's property ) The likely sell price will be about $55,000 - $60,000 ( this includes the pay off of the property, the repair costs, closing and the pre-paids )The pay off for the property is $29,000 The ARV ( from the research I have done, should put the property in the $85,000 - $90,000 range ) after it's fixed up I already have a licensed and bonded Contractor, lined up to do the work ( they have worked on and know all of the guidelines for FHA 203K loaned properties ) There is one thing I am a bit concerned about, and that is....

Generally, closing costs involve these: loan origination fee (a compensation to the lender, around 1% of loan), loan application fee attorney's fee, lender's attorney's fee, credit check costs, PMI mortgage insurance title search & title insurance for lender and title insurance for yourself.Seller prelim Title report :: hazards report :: Agent Commissions :: Existing Loan Payoff :: transfer tax/recording :: owners title insurance :: 2,400 (0.35 * sales price) attny fees :: liens / judgments :: hoa fees :: prorated property taxes :: ttermite inspection ::repairs (demand by buyer) ::Buyer Appraisal fee Origination fee Pre-paid interest Pre-paid insurance Flood certification fee Tax servicing fee Credit report fee Bank processing fee Recording fee Notary fee Title insurance

ACCEPTABLE USES:The following are acceptable uses for cash-out refinance transactions:paying off the unpaid principal balance of the existing first mortgage;financing the payment of closing costs, points, and prepaid items.

In the deal I did, I also prepaid the property taxes.

20% cash down 80% loan Fees: $7,500 Bank Loan Fee Prepayment Premium: 5% in year 1, 4% in year 2,3% in year 3, 2% in year 4, 1% in year 5 in each case on the then principal amount prepaid.

I bought an LLC book from NOLO which had a copy, so I morphed that one and the one the title company gave me and it was acceptable.I signed up for pre-paid legal through legal shield.

secondly, BK  recovery is not difficult for unsecured write-offs;  Apply for prepaid credit cards (they act just like a bank debit card). 

Quote from @April September: I don't drink coffee( never have ) and you suffer from mental illness ,called COGNITIVE DISSONANCE.My post was for the smart people who care about the truth.Enjoy your slavery and your stupidity and don't forget to pay your taxes, mortgage that you never had, " your" car registration and your prepaid utility bills.And of course, don't forget your vaccines. 

Besides being in the Army, I'm an independent associate with PrePaid Legal Services, inc.