Posted by Dan on November 22, 2004 at 21:50:10:
My brother has a lender out of state who is able (after finding houses that are listing below what they appraise at) lend at the appraisal value and thus he walks away from closing with several 1000 dollars.
Is there a way to find a lender in California like this?
dan
money back after close - Posted by seasons
Posted by seasons on November 04, 2004 at 24:11:26:
I was offered a property for 90% of the appraised value. The seller says he will bring the money to the close. To top it off he will give me 3,000.00 back after the close (we could call it a commission). Is this legal, and if not what law is being broken.
Re: money back after close - Posted by River City
Posted by River City on November 04, 2004 at 08:21:00:
If you are obtaining a loan on the property, are you advising the lender that the seller is giving you $3,000 after the closing of the loan? If the seller can give you $3,000 after the closing of the loan, why can’t the seller put in the contract that s/he is giving you $3,000? Why can’t s/he state that the $3,000 is to go towards closing costs?
When you sign the loan application you state that everything on the loan application is true and correct to the best of your knowledge, including the details of the contract and the transaction. If you commit fraud on this loan, you are committing fraud against the federal government (Title 18 United States Code Sec. 1001) and you are subject to fines and imprisonment.
I have also seen lenders call loans due and payable in full when they find that borrowers commit fraud on loans. Is it worth $3,000?
Re: money back after close - Posted by RUSTY HYLTON
Posted by RUSTY HYLTON on November 08, 2004 at 13:02:24:
Be very careful when doing this or you could loose your $3000. I assume that you have agreed to raise the buying price of the house to cover the $3000. Why not have it written that you get $3000 for carpet allowence at closing? Make sure that you write that a check is to presented to you during closing. If not, at the end of closing the seller walks out without giving you your money and you are left taking them to court to retrieve it.
I had a friend who lost $5000 because they tried to get buy without writing it in the contract. At the end of the sale the seller said that he thought that the extra $5000 that they offered for the property was for the pool table that went with the house. They were left with no proff to fight with and an extra $5000 balance on their loan.
You can get money at closing and still do it legal.