2007-07-22 07:21:44 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
A motivated seller is a person who needs to sell the house quickly for many reasons like moving for a new job, cant afford the house payments or many others. If they are selling a house for 250k and you have it appraised because it needs work, it may appraise for more or less. If it appraises for less like 235k, you could ask the seller to pay for closing and give you 10-15k cash back and you will buy the house for 250k.
2007-07-22 07:35:31 · answer #1 · answered by meccaman97 1 · 0⤊ 1⤋
There are several ways to do this that are defined as "bank fraud". I remember one time a loan officer came into my real estate office with a buyer and another agent. The first words out of the loan officers mouth as they were about to hand me the offer was "now, this is perfectly legal!"
It wasn't legal. We did not take that offer so I don't know what happened to those buyers or that loan officer, but I know several people that were convicted of Bank Fraud and went to prison. I never intend to lie to a bank officer in order to get a loan.
If you are involved in a deal that involves you getting money back at closing:
1: Make sure all details are spelled out clearly on the contract itself.
2: Make sure all addendum are clearly noted on the contract.
3: make sure every dime is openly disclosed on the HUD 1 sheet at closing.
4: If anything looks the least bit fishy, talk with an attorney before you sign anything. Also talk to your tax guy.
It is possible sometimes to have things put into escrow so that bills can be paid after closing, but only with the prior approval on the lender and that rarely is approved.
2007-07-22 08:10:59 · answer #2 · answered by glenn 7 · 1⤊ 0⤋
In traditional financing with a bank, due to recent laws, a buyer can only get cash back at closing equal to the amount they put in. (For earnest money for example). You are able to get them to pay for repairs sometimes and closing costs, but not actually walk away with more money in your pocket than what you started with.
At this point if someone tells you different, then they are bordering on loan fraud. A lot of trusting people have been going to jail this past year for listening to people like this.
A hard money loan, (a short term loan with high interest rates) does allow you to pull money out of a closing, but in the form of draws after work has been completed. This type of loan is usually for real estate that is in need of repair and then will be refinanced or sold.
2007-07-23 02:03:11 · answer #3 · answered by Robert Rees 2 · 0⤊ 0⤋
Get the sellers to accept an offer that is more than they can get from anyone else then give you help with closing cost and allowances for things like a new roof or carpet.
So if they have a home that apprasies for 340 but isn't worth more than say 320 and you qualify for a 340 mortgage and offer 340 they could pay closing cost of 5K plus give you a 5K roofing allowance and still be better off that waiting for a full price offer.
2007-07-22 07:27:13 · answer #4 · answered by shipwreck 7 · 0⤊ 1⤋
You can't, it's illegal.
All money that is exchanged has to appear on the HUD. Lenders do not permit buyers to get cash back at closing, with the exception of the earnest money deposit, and even that is only if the seller concession covered the closing costs.
The lender won't allow it.
PS: If you do it outside of closing, it's a felony and if a Realtor is involved and knows about it...they could lose their license.
2007-07-22 07:30:48 · answer #5 · answered by Expert8675309 7 · 1⤊ 0⤋