Buyers Closing Cost Credit

A buyers dream scenario on a short sale would be to get a great deal on the property and to have the bank approve a fee to their buyers closing costs credit. The general practice of the mortgage servicers and investors are to approve a 3% credit to buyer closing costs through a short sale for buyers obtaining a government financing. Depending on many factors such as the investor or the minimum NET proceeds required from the sale the fee to buyers closing costs credit may be cut. Also, in a Pre Foreclosure Sale Program the lender is only delegated to approve 1% credit to buyer closing costs. It is possible though to have the bank submit a variance to HUD for them to approve 3% closing costs. From my experience if your fighting for the buyer on a short sale transaction it is always a good idea to try to have the bank pay a fee to buyers closing costs credit as you never know what will or will not be approved. The worst that will happen is that they ask you to remove it from the Est. HUD, so why not give it a shot?

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