Short Sales and Closing Costs Assistance

[Sunshine85]

So... after looking for a nearly a year, and putting offers in on six other homes, I'm finally under contract. The house is a short sale (B of A) holds the mortgage. The short sale was approved in November, but the original buyer walked. I offered $1k more than the approved short sale price and the bank accepted within two weeks.

My problem is that the house has CDD fees and a monthly HOA, so even though the purchase price is $20k less than what I was approved for, my DTI is too high (47%). I'm going to pay off two credit cards and have my lender do a rapid rescore, to boost my score a little and bring my DTI down, but my lender would also like to see cash reserves. I did not ask for closing costs assistance with my offer, but am now in a position where I need to use the funds I was going to close with as reserves instead. I'd now like to go back to Bank of America and ask for 3% in closing costs, but at the same sales price. Just wondering if anyone has experience with negotiating closing costs assistance after the offer has been accepted. The house is in foreclosure, and the seller has moved out, so I was hoping that  maybe B of A would be a little more willing to deal.

Any input is greatly appreciated. Thanks!

[JM-AM]

Is your contract pending financing?

If its pending financing you may be able to walk away from the deal. If that is the case BoA may be inclined to work with you.

If its not pending financing then you signed a legal contract and BoA can hold you to the original terms.

Make sure you read the contract from top to bottom and know what your rights are.

Obviously YMMV in either situation, but in my opinion I see no reason for BoA not to assist you with closing. It takes the house off their books, and much cheaper then a foreclosure.

[Sunshine85]

Thanks for your response.

The contract is contingent upon obtaining financing, so that definitely works in my favor. I agree that it would be cheaper for them to help with closing costs than to foreclose. Hopefully, they'll feel the same way.

Thanks again for your input.

[JM-AM]

Good Luck.. Hope it all works out for you..

[Sunshine85]

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@JM-AM wrote:

Good Luck.. Hope it all works out for you..

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Thanks- I hope so, too!