i dont fully understand this? if im purchasing a home for $150,000 and feel like something such as the foundation is not correct so i ask for a $10,000 credit from the buyer. Is this money still financed through the bank? do i finance $150,000 and recieve $10,000 from the seller? do i finance $140,000 and live with that?
2007-12-08 16:30:44 · 2 answers · asked by mario87123 2 in Business & Finance ➔ Renting & Real Estate
Do you mean a $10,000 credit from the SELLER, right? Here's the bottom line on seller credits. Any cash back from the seller to the buyer should be in the contract in such a way that the lender knows about it. To do otherwise constitutes mortgage fraud. That does not mean that you can't get the seller to pay for the foundation. Just document it with a contractor's bid and specific language saying that the work will be paid for from seller's proceeds paid directly to the contractor. The underwriter might be more likely to accept that. Better way to go, that will make everyone happy is to just lower the price, unless the work really needs to be done soon. See the attached article for more details.
2007-12-08 16:46:28 · answer #1 · answered by artwhiterealtor 3 · 1⤊ 0⤋
First get a home inspection. If there is truly a foundation problem and it is not disclosed you can sue the current owner for having it fixed. Assuming you are correct. Most lender will not loan on a home that has a foundation problem. the credit will go towards your closing costs. You still are paying on the 150k.
2007-12-08 17:17:57 · answer #2 · answered by Big Deal Maker 7 · 0⤊ 0⤋