As i said before everything is negotiable.The banks will often pay for your title insurance if you use their title company,beyond that everything is pretty much the same as a purchase from a private individual.You can ask for anything you want and maybe you will get it.If this is your first deal I would suggest you look for something closer to rent ready,a full rehab will be more expensive and time consuming than you will expect.I would suggest no more than a patch,paint and floor coverings for a first project.Keep looking and you will find a good deal.Do not pay too much if the seller will not take what works for you move on,the money is made on the buy
I am in NY.I buy and sell houses regularly.Everything is negotiable.What costs specifically are you asking about and I will try to help.Also what county in NY are you asking about?
Posted by kathy solomon on June 13, 2009 at 19:58:23:
Ken, I am in the Bronx. I’ve bought one reo from fannie mae, but none from a regular bank. I’ve heard that dependending on state laws banks pay some of the usual buyer’s costs but haven’t heard specifics. I’ve been bidding on a property owned by ocwen which is based in FL and doesn’t finance ny mortgages, so I’m getting financing from citibank. The broker told me the seller’s and buyer’s costs are no different in an reo than they are in a regular sale. I just want to double check. The bank was asking 214k, but the property needs to be gutted and the flood insurance is high so I started at 144,500. We’ve been back and forth. My final bid was 160k but the bank said they don’t want to come down from 190k “for now”. My plan was to purchase and rent for a few years then sell, but I need to keep the monthly costs down. It should rent for $1600 but the rental market here has gotten a little soft so I’ve got to be careful not to increase the monthly carrying costs too much. I’m not sure where there’s any room for further negotiations right now but it would be good to know what’s the breakdown of closing costs of reo’s in NY. Thank.