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it was worth 75,000 he bought it for 40,000,,the bank gave him a loan for what the house is worth which was 75,000,,so what im saying is he has 35,000 extra in bank,,how can i do this,,he moved a away and i cant get in contact with him,,???

2007-08-06 15:48:25 · 7 answers · asked by kcir926 2 in Business & Finance Renting & Real Estate

7 answers

If he really did that, then it was probably fraud. On paper he bought the house for $75k and the seller gave him $35k after closing. I wonder why he moved away?

2007-08-06 15:52:05 · answer #1 · answered by Anonymous · 0 0

They don't do this anymore in the US. No matter what the house is worth over the price, your "cash out" on a purchase loan is limited to the amount you put down as deposit on the contract. They may lend you a little more than the price to cover closing costs, but you're not going to get cash rich by going into debt buying houses.

2007-08-06 22:54:30 · answer #2 · answered by open4one 7 · 0 0

This does not sound right at all. On purchases the lender will base the loan on the purchase price of 40,000 not the appraised value. If he refinanced the home after it was in his name to get cash out the lender would use the appraised value, but it is not possible nor legal on a purchase transaction.

2007-08-06 23:06:48 · answer #3 · answered by yourmtgbanker 5 · 0 0

You can't do this.

That was back in the day.

Why do you think we now have a record number of foreclosures?

Because of people like your friend.

He took the $35,000 and skipped town.

Most likely never to be seen from again.

This is why lenders are now requiring 10-20% down on the homes they loan money for.

2007-08-07 22:24:40 · answer #4 · answered by Terry S 5 · 0 0

Somebody screwed up. Especially in these days of mortgage credit crunch, no sensible bank officer would lend 175% of the purchase price of a house; even 95% is hard to do.

2007-08-06 22:53:40 · answer #5 · answered by Anonymous · 0 0

He can't unless someone gave him cash back outside of closing...which is a felony, and a common scam.

It isn't something you want to get involved in.

Chances are, an appraiser was paid off.

2007-08-06 22:58:17 · answer #6 · answered by Expert8675309 7 · 0 0

So in other words, he took the $35,000 and ran.

You will never see or hear from him again.

2007-08-06 22:51:35 · answer #7 · answered by Anonymous · 0 0

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