Updated over 12 years ago on . Most recent reply
Closing cost credit on an REO
Anyone that knows the actual REO department side of things with a bank might be able to answer this question for me.
I was bidding on an REO and had a small (less than 3%) closing cost credit in my offer. After going back and forth a few times the REO agent told my guy that the bank would kill the deal if I insisted on a credit.
I then put in a counter $1,500 less than the Net of my last offer to make up the difference (or like 8x the difference) in my cost structure by having to lay out that extra cash.
They then countered at the price the netted the same as my previous offer. I then said that we were holding firm to the lower offer and they took it.
Okay so question is: Is there some stupid regulation that makes it advantageous for them to actually get less money for the asset by not offering a closing cost credit?