Are any of you seeing banks provide seller concessions?

Have any of you seen banks provide 3% or more seller concessions on the short sales? If so who has been willing to do this. Our area has several short sales. The buyers in our market normally need the seller to provide concessions to close the deal.

Views: 508

Comment

You need to be a member of Short Sale Specialist Network to add comments!

Join Short Sale Specialist Network

Comment by Joseph C. Alfe on May 14, 2010 at 10:42am
I have seen 6% but mostly 3% Remember, if it's reasonable and customary there is a good chance of getting anything paid.
Comment by Antonette Solano CSSG, SFR on May 13, 2010 at 10:29pm
I have a few that were approved they will normally a max of 3%.. that was with EMC or Indy Mac
Comment by Marie Goodloe on May 12, 2010 at 5:35pm
Well put Dawn!
Comment by Dawn Rupersburg on May 12, 2010 at 4:42pm
I don't think you can know what the bank wants until you start negotiating with them unless you have an approve HAFA. The bottom line is all that matters in the end to the bank.
Comment by Cidalia Mendonca Matukas on May 12, 2010 at 3:43pm
I provide all potential buyers a disclosure that they must sign when submitting an offer along with the buyer agent. This disclosure basically tells them that many banks are not looking to pay seller concession. I discourage my seller to accept offers that have concession. Like Mike said these buyers are typically not the best fit for a short sale transaction. I have to say I have never closed one with concession. It just makes the most sense. Bank wants an offer that is as clean as possible.
Comment by Joseph C. Alfe on May 11, 2010 at 10:33pm
So long as costs and fees and concessions are "Reasonable and customary" most lenders will approve most of the time, just no guarantees.
Comment by Kevin Vitali on May 11, 2010 at 6:11pm
I have been fairly lucky across the board with banks offering buyer concessions on short sales. Once in awhile I run into one that won't, but on the whole the banks have been pretty good about it. I doubt you can get by with more than 3% as a concession. I usually will negotiate it down to three with the buyer before I submit the offer for short sale approval.
Comment by Angela Alfe on May 11, 2010 at 8:11am
Dawn, the banks main goal is to gross more money than they would on a foreclosure. If that means not providing seller concessions, that is what will happen. They really do take into account the costs of a foreclosure and the costs of a short sale and weigh those out. I do believe that they will usually save more money by doing a short sale, but each case is different...and there are some cases where the bank will take the property back in foreclosure and make more money on the foreclosure sale than on the short sale (in a case where the short sale offer is a total low-ball or when there are multiple junior liens on the property).
Comment by Debra Donahue on May 10, 2010 at 11:02pm
I have had several Short sale where there has been a 3% seller concession. IndyMac,Bank of America,National City. They have all gone to close with the sellers concession.
Good Luck
Comment by Dawn Rupersburg on May 9, 2010 at 11:12am
Thank you for the many replies.

Make sense to assure a buyer can still close if the seller will not provide any seller's concessions. The main reason I asked this questions is because in our area most buyers need the seller to provide concessions.

In order to move more short sales the banks need to compete with foreclosures. Foreclosures have no problem providing seller concessions in our area.

Forum

Ocwen Contacts Short Sale Package

Started by Jan Baron in Rants and Raves. Last reply by Anna Wilk Jan 14, 2016. 5 Replies

Shellpoint Mortgage

Started by Celeste ODea in General Discussion. Last reply by Brett Goldsmith Sep 4, 2015. 3 Replies

Extension Fees & Closing

Started by Colleen J Couse in Rants and Raves. Last reply by Brett Goldsmith Sep 3, 2015. 1 Reply

© 2019   Created by Mike Linkenauger.   Powered by

Badges  |  Report an Issue  |  Terms of Service