I am using the dual-agency (both agents are from same firm). I submitted an offer for $500K. I was contacted by my agent that I have to increase ,my offer by $5K because there are couple cash offers which near $500K. The extra $5K is needed to secure this property. I took his suggestion. Therefore, the sale price becomes $505K.
I applied for a loan with 20% down. When I showed up at the Title Company, only $400K (80% of $500K) is funded.
The reason given by “escrow agent” is that my “loan broker” has mistakenly entered $500K as sale price. Therefore, the funding is approved for 80% of $500K. I still have to pay $505K for this property so the down payment will be $105K. But, “loan broker” is correct on his Good Faith Estimates; $505K.
How can I tell is there anything “fishy” on this sale? Isn’t that true lender will contact someone (e.g. listing agent) confirming the sale price instead of solely depends on “loan broker” sale price.
Any comments are greatly appreciated. Thanks
2007-05-10 10:45:48 · 6 answers · asked by Kevin Y 1 in Business & Finance ➔ Renting & Real Estate
Something smells here. If the extra $5000 that you paid the broker does not show up as a credit on the escrow statement, there is thievery. But more than likely, it does, and in that case you just wound up making a larger down payment than you expected. If anything is amiss, contact the state department of real estate or other agency which oversees brokers. Pay particular attention to any charges related to placing the loan; there is ample room for funny business here. Do not sign off on the final escrow instructions until you are satisfied that everything is on the up and up.
2007-05-10 10:55:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Your real estate agent came to you and said that the offerred price was not good enough and you had to increase the price by $5000.
You loan broker apparently did not make a mistake, on his document the sale price is $500,000, I don't know why the escrow agent would tell you that. he got you a loan approval for 80% of $500,000 as the original contract called for.
If the sales price was increased the loan broker should have been informed. He would at that point increase the sale price and asked for a loan amount of 80% of $505,000 which would have been $404,000.
If there is anything fishy it appears to be between your real estate agent and yourself. He is the one that contacted you and indicated that you had to up the price by $5000K.
To get everyone on the same page, you should call the escrow closing agent and loan broker and place everything on whole until this problem is ironed out and find out why and who will pay the additional amount. If you consented to the increase we all know who will be paying this increased amount.
What did the appraisal of the property give a value of? This is another thing that the mortgage broker base his loan amount on. If this has not changed the loan amount will not change.
Check with your realtor, this guy/lady appears to be a little on the shady side.
Did the sellers turn down you offer of $500,000, and ask for an additional $5000K? Did you sign a paper for the additional $5000K.
Again a meeting of the minds would be in order to sort this out.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-05-10 11:22:39 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
They get at least 7% off the top and will turn down a reasonable offer because their profit is too low. When the contract is up sell it as a private sell. When it sells have your attorney handle everything or a realestate attn. cost MUCH less and the profit goes into YOUR pocket not theirs.
2007-05-10 10:55:15 · answer #3 · answered by skeeter195848 4 · 1⤊ 1⤋
This sounds wrong to me. I would be wary. I would file a complaint or at least notify someone in the office that this happened. It won't necessarily help your situation, but at least it might keep it from happening to someone else.
2007-05-10 13:12:00 · answer #4 · answered by Camille 1 · 0⤊ 0⤋
doubt out they could check at the estate agents i think there on a percentage
ring in another name and ask how much for the house all together all in
2007-05-10 10:52:28 · answer #5 · answered by chaz1263.msn.com 1 · 0⤊ 0⤋
Yeah, your will have to pay extra 5K because you accepted to pay for it.... it is only going straight to your seller and is not included on the purchase price.
2007-05-10 10:58:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋