From my understanding when you buy a property from a bank it seems you will incure closing costs in addition to back side closing costs. Would someone be able clarify front side and back side closing costs when purchasing an REO property? Perhaps a list of what items such as taxes, insurance, survey, escrow fees etc. for front and back closing costs?
Thanks for your time.
When you contract an REO (Real Estate Owned) (Lender Owned) property if you don't assign your contract and you choose to close A-B then close B-C to your buyer or your going to rehab the property you must pay closing cost's to you (A-B) then you must pay closing cost's for the sale (B-C).
Closing cost’s vary slightly from state to state and what is paid varies as some states have transfer taxes, however rule of thumb is 2.5% for sale cost and 2% for buyers cost and seller pays for title insurance which is the .5% difference in cost!