Posted by Nick on July 30, 2001 at 15:27:55:
I had the same problem when I closed on my last deal. What we did was to have the seller write a check for the amount above the allowed 2%. This did not cover the entire termite bill so I wrote a check to cover the rest. The checks were given to the title company before closing. Then at closing the title company paid for the termiting.
Sometimes the investors are more comfortable with this going on outside of the closing.
Hope this helps
Nick
SELLER CONTRIBUTIONS - Posted by BRANDON FORD
Posted by BRANDON FORD on July 30, 2001 at 10:16:09:
HI. I am a mortgage broker and have an escrow due to close in two days. My investor limits seller contributions to two percent of sale. However we have a termite problem and we have negotiated an allowance of five hundred dollars to my buyer, which takes us over the two percent mark. My question–
How to get this money to my buyer?
Should I…
tack it on to the real estate comission?(i am also re agent)
get a repair bid for five hundred and credit my buyer?
take a chance that my investor won’t care if it is in form of “an allowance”?