A West Chester short sale occurs when a seller cannot continue to afford mortgage payments and so the bank agrees to sell the house for less than current value of a home. Because there is so much debt that is either forgiven or pursued as deficiency litigation it begs the question as to who pays the closing costs with a West Chester short sale.
In any short sale agreement there are three parties that are involved: the seller, the seller’s lender, and the buyer. A buyer can try to negotiate closing costs in the same way that they would in a conventional loan, but the person that you are negotiating with is very different. In a West Chester short sale, the seller does not have any rights to negotiate paying closing costs. It is the bank that would take over the buyer’s closing costs. Because the bank is already losing money on the deal, they are rarely agreeable to incurring more loss on the home.
Including language that turns some of the closing costs over to the lender actually occurs during the process when the buyer is making an offer through the seller. The seller agrees to the terms that will then be turned over to the bank. That means that the seller may agree to closing costs on the West Chester short sale, but the bank still may refuse the offer and reply with a counteroffer or an offer denial.
Some lenders will pay all of the buyer’s closing costs with a West Chester short sale, others will pay some of the costs, and other banks will refuse to pay any of the buyer’s closing costs. It is a good idea to work with a West Chester short sale agent that has worked substantially with the bank you will be working with. They will give you a good feel as to whether you should include payment of buyer’s closing costs in your offer.