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10K 5 yrs to pay 0%
my lender is asking 10,000 as closing cost, payable in 5 yrs with 0%.i have a third party that is negotiating with the lender , and this is what the lender is demanding

5 Thoughts on im in the process of short selling my house in Va,but the lender is asking for 10K closing cost,is this right?
  1. Reply
    realtor.sailor
    November 2, 2011 at 11:45 am

    In order for the seller to pay the buyer’s closing costs this would have to have been addressed in the contract for sale and purchase and in most cases the sales price is higher than the list price so the seller can cover those costs. If it wasn’t then you’re not obligated. I don’t understand the 10K 5 yrs. Are they offering to financing those fees? That’s highly unusual. Plus your mortgagee (lender) accepted a sales price of $ X and now it’s being reduced by $ 10K. What does your mortgagee have to say?

    realtor.sailor

  2. Reply
    Real Estate Guy
    November 2, 2011 at 12:06 pm

    Is this right?

    Huh, is it right that you are short selling your house when you agreed to pay back the money in FULL when you got the mortgage?

  3. Reply
    Toiy N
    November 2, 2011 at 1:01 pm

    Is this right?

    Huh, is it right that you are short selling your house when you agreed to pay back the money in FULL when you got the mortgage?

  4. Reply
    Alterfemego
    November 2, 2011 at 1:27 pm

    Depends the lender can pretty much ask for what they want, you can decline it. On average closing costs are 1-2% of the sale price.

  5. Reply
    Noneya
    November 2, 2011 at 1:46 pm

    it’s not really closing costs per say. What your lender is doing is offering you a compromise.
    Here is an example.
    Lets say that your lender has determined that you home is worth $ 230,000.00 right now.
    Now lets say you have a buyer who has offered $ 200,000.00 with you paying $ 6,000 in closing costs. This would net your lender roughly $ 194,000.00 minus realtor fees and such.
    What you lender is doing is offering to sort of split the loss with them under some very favorable terms for you.
    If you chose to not take the offer you run the risk of not selling or selling and having the lender send the entire difference to collections with interest due.

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