Posted by Fredrick the Entertainer on April 27, 2007 at 09:20:55:
Yes that is correct
Financing - Posted by Mike D
Posted by Mike D on February 27, 2007 at 06:54:17:
Not sure if this is legal, I don’t see why it wouldn’t be. A buddy of mine bought a condo down in Florida from a developer. I don’t remember the exact figures but I will use $200,000.00 to make things simple. The seller offer to sell the property at a higher price of about $220,000.00 with 10% down and then after the closing my friend would recieve $20,000.00 rebate making the house $200,000.00 fully financed, with virtually no money down. Is this a common practice? Is this a possible incentive I could use to make things easier for a potential buyer?
Re: Financing - Posted by River City
Posted by River City on February 27, 2007 at 10:02:24:
Go straight to jail. Do not pass go. Do not collect $200.
Of course this is illegal. It’s fraud!! You are committing fraud on a real estate transaction. Google “real estate fraud” and read the responses! Be sure to read the kinds of punishment these people also received.
Re: Financing - Posted by Bartholumew
Posted by Bartholumew on March 05, 2007 at 07:20:46:
It doesn’t seem like it is illegal, It looks as if it is more of a loop-hole. Technically the person is paying the full mortgage and you are just giving them some money back. You should do more research on this and not take an amateurs word.
Re: Financing - Posted by River City
Posted by River City on March 05, 2007 at 12:20:39:
If Mike REALLY wants to know if this is legal (which it is), he would ask the lender. The lender will tell him that ALL agreements between the parties must be disclosed to the lender, and that at closing, they will sign a statement to that affect. The lender will also tell him that the seller can only contribute up to 6% in closing costs, etc. Lenders do not allow sellers to give money to purchasers of their properties.