Short Sale Closing Costs

[Grant Waugh]

Hey BP! I have my first RE offer in on a short sale and after a few months, it looks like the seller's bank may finally be approving the sale. I put in my offer at 103K and the seller's bank's appraisal came  in at 95K so that is what I will be paying as long as the bank approves the sale. The real estate agent is telling me the lender is changing the closing costs that I originally negotiated. I agreed to split the closing costs. I haven't heard from the agent what the change is but I am assuming that the lender is going to ask that I pay all of the closing costs. I feel like this may be their way of trying to get as much money out of me as possible since they are losing money on the house and now are receiving 8k less than my original offer. My question is, do I have any ground to stand on by holding firm that the seller (or bank I guess in this case) pay half of the closing costs, or is it likely that if I don't agree to pay the full cost, the bank will reject the sale and then either go to the next highest offer or foreclose on the house?

I don't want to pay the full closing costs if it can be avoided but like many places, it's a hot market here in Atlanta. I am eager to complete my first deal and don't want to lose the opportunity.

Thanks in advance.

[Brett Goldsmith]

Did you lower your purchase price to 95k? I'd probably lower it slightly below 95,000 as you'd probably still get approved if everything else checks out. The servicer will decide what closing costs are paid and all other closing costs will be covered from buyer. Bank typically pays a portion or all of seller escrow fee or settlement fee, title insurance, delinquent taxes, and commission. They may towards some other fee's too. You have little to no negotiation room with closing costs as that is based off servicer and investor guidelines. 

Best of luck!