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Annie Said:

I am buying a foreclosure property and the bank/ower agreed to pay up to $10,000 as a closing cost credit.?

We Answered:

You should have a real estate attorney. It is not too late. What you spend on him will be a lot less than what they'll take you for if you don't.

Karl Said:

How to deal with closing cost mascalculation by seller's bank?

We Answered:

The closing attorney works for you. It sounds like you hired attorneys to negotiate a Real Estate deal instead of a Realtor. There should have been only one attorney. More information would be needed to have a more accurate openion.
I am not an attorney, therefore I cannot give you legal advise. If the seller had no mortgage and there are no liens or judgments against the property than I would let the seller and seller's attorney eat the money. Call your closing attorney back and make sure any liens, judgments, and mortgages are paid from the closing proceeds. Your title insurance should cover any attorney errors. Now if they made an error on the HUD with the purchase price that was on the purchase agreement they could probably sue you for the contract price. That would be another legal issue since everyone signed the act of sale.
Contact your closing attorney tell him you want him to do his best in solving the problem without you coming up with the funds. Would not hurt to ask him if it is a title issue then bring up the title insurance.

Michael

Loretta Said:

Why does the seller pay closing costs?

We Answered:

It is the custom, but there is no law that you must pay those costs. The seller has always gotten stuck paying them since it is so easy to pay them out of the seller's proceeds of the sale. The buyer has to go to her bank account to get the cash but the seller can just deduct that amount from the sale price. Which leads many buyers to puff up their offer by $1,800 and then ask the seller to pay $1,800. Seems silly but it saves the buyers from emptying their bank account.

For property "flippers" who sell 6 houses a year, they moan every time about paying $1,800 after they have owned the house only 3 weeks. And the previous seller paid $1,800 just 3 weeks ago.