seller wants $3000 cash to close .. isnt this illegal?
okay we are now 2 weeks from closing but the problems continue.
Seller is expecting to receive $3000 moving money even though they did not qualify for the HAFA program. They were emailed about this months ago by the negotiator (i was copied on it). They are stating they will not close without it.
isnt it illegal for me (the buyer) or the broker to agree to give them cash to close the deal?
what say you???
Replies to This Discussion
-
Permalink Reply by obed montez on
-
At some point people in general have to be responsible for their actions. Life is/ was never fair and as long as there is life some will suffer and some will prosper.
-
-
Alexandra Germon: thank you for your help. you and satar really have a good grasp of the situation.
further, i appreciate the point of view that you share from the seller's perspective. if they insist upon the $3000 dollars then i will negotiate with the agent to share in that cost by buying the spa.
however, my bigger issue right now is them wanting to stay after the close of escrow. like satar you advise against it and trust me this is helping me right now more than you will ever know. i really have a bad feeling about it. they seem like nice people. husband lost job and finally got another job but it is 4 hours away. they were realllyyyyy nice this last time around. i didnt give them a definite answer but i more or less agreed to letting them stay post-closing. i was after them all week so they could confirm the dates. today finally i get an email from the seller directly asking me to confirm that i would allow them to stay in the home post-closing but i have yet to respond.
what advice if any could you offer me?my question to you since you deal with sellers mostly is how should i diplomatically handle telling them i don't want to do the post-occupancy without coming across as the big bad arrogant buyer? they were very difficult to deal with at first and i don't want to screw up this sale. i'd like to keep them happy.
1. should i blame it on my lawyer? saying he advised against it b/c too much risk?
2. should i invent a personal problem and tell them i need to move in earlier than expected?
3. i'd also like to add something like, "however, to show you good faith that we sympathize with your situation we would like to offer $1k to offset your storage costs. We'd also like to negotiate to buy some of your appliances if you are selling them."
what say you?
-
Permalink Reply by Satar Naghshineh on
-
How long are they asking to stay? Do they have kids? If so, when does their school end? If I lost my job (by the way, another disqualifying factor for a loan) and I got a new one 4 hours away. I would still do the commute while my family stayed down to finish the school year. Sorry to jump in on Alexandra's question! ;)
-
-
no need to apologize satar, trust me, I TRULY APPRECIATE ALL THE HELP! :D
they are asking to stay about a week. they have 2 sons in their early 20's. so it has nothing to do with school year b/c even college kids have ended their semester by then.
the husband has been doing the commute for his new job for a while now. wait! just had a EUREKA moment. if the husband has been commuting for a while now then he must have a place to live up there because he is gone for periods at a time (slap myself on forehead!). perhaps its an apartment that isnt big enough for all of them but still, they have options.
another alarm bell that is ringing in my head is that i remember i asked them how long it would take after they closed with me to secure the other new loan and if they were SURE they would be out of current house by X date. they werent really sure! sounded confused about the process.
-
-
The husband is probably renting a room. I know I would or just sleep in my car and shower where I can. Maybe they need the week so they can collect money to put towards their rental??
Who knows but I am pretty sure they are not buying!
-
-
Alexandra Germon : thanks for the advice of submitting my repairs to bank. inspection report came back at $7500 dollars! yikes. even if bank doesnt go for it i'd still like to try. i hope the listing agent doesnt give me a hard time about submitting it. funny, YOU tell me to submit it but he (who is representing both sides of deal) just ignored it when i told him.
do you think if we submit it it could stall the sale though? bank already gave approval letter and deadline is 2 weeks from now.
what say you?
-
-
You can try. It has like a 15% success rate at this stage where they can either give you credit or reduce the purchase price without resubmitting the entire short sale package over again or stalling the sale. It all depends on the lender as well.
-
-
ok! great to know satar. especially if the agent gives me a hard time about submitting it.
-
Permalink Reply by Richard OBrian on
-
Our understanding is NO, any monies going to the seller from a short sale (regardless of who pays, assuming HAFA has been denied) must be included (in California) on the HUD. The approving bank will (in every short sale we have tried) have kicked them out. Check your approval letter from the bank it could have verbiage disallowing the seller from any profit. Now the buyer could come back and sue for damages and there could even commissions owned by the seller to both the selling agent and the listing agent. You need to educate your seller of the risk there are setting themselves up for…
-
-
You are correct if the 3k is based on the short sale. However, what the buyer and seller do on their own, outside of the transaction without the involvement of the brokers is perfectly fine. For example, it is not OK for a buyer to create a bill of sale for the furniture and make it contingent on the transfer of the property he is buying. However it is OK for the buyer to make a bill of sale between him and seller on their own terms.
-
-
I am a California broker. I am not sure what you are trying to accomplish. If the HOA foreclosed on the property, that means that either they own the property or someone picked it up at the Trustee's sale and paid off all the senior lien holders. I don't see a short sale scenario. Who is trying to get title insurance? The HOA?
-
-
Wow, that's a new one for me. I am under the impression that once the HOA took ownership of the property, then they have to settle all senior liens. If the HOA can take ownership of property without satisfying all senior liens, then I would think all the HOAs in California would be foreclosing on property.
I think that Wells is willing to discount the note rather conduct a short sale. A short sale would require the borrowers permission. Discounting the note will not. I can understand the title insurance company's hesitation as the borrower could lay claim to title and that's why need the borrower to sign off on any claims to title. It's not an escrow policy, it is strictly the title policy.
You simply need to shop title companies that are willing to insure title based on this situation. Here is a list I would start calling Monday morning:
http://www.manta.com/mb_44_A2169_05/title_insurance/california
Sorry I couldn't be more help. It scares me that this even happened. It could lay precedence to other junior lien holder foreclosures.
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons