Seller bring money to closing; not short sale or HAFA (loan, credit card)

[shoehoard]

Bought my home in Aug 2008 in CT. Husband and I are wanting to move back to FL to be near family. We have been able to pay our mortgage on time every month so we don't have a hardship. We just want to sell. We realize that even with the remodeling we've done, we're still going to take a hit on the sales prices vs. what we owe. We know we'll need to come to closing with money. Just wondering what the viable options are for doing this. I was thinking a personal loan from our bank to cover the difference + realtor commission. What are some other options for getting the money to bring to close. Does the lender care where the money comes from like they do when you are applying for a mortgage? And how does it work when the offer is under what you owe but you aren't doing a short sales? Does the realtor let the lender know that the seller will bring money to close?

[movinmomma]

We did that in 2009. As long as you have the money they don't care where you obtained the money (at least in our case). The Hud1 statement was the source of the exact amount we owed. We did estimate what we were going to owe with our realtor before hand so we knew about how much we would owe It sucked but it was nice to be out from under that house. We bought in April of 2006 and sold it in Dec. 2009. Good Luck!

[2bindenver]

If the seller is bringing money to closing to cover all costs, then it is not a short sale.

The lender does not need to know where the funds are coming from.

[piyf]

What we did was use a credit card and transfered 10k to our bank account. I just wanted to get out since I moved 800 miles away. But we make enough and had it paid off in 4 months. Thank god for my bonus. But a loan at a credit union would be a much wiser option.


Major difference between buying and selling. They're lending you money when you buy. When you sell they get all their money back so as long as it's not stolen they'll take it.

[piyf]

Originally Posted by movinmomma

We did that in 2009. As long as you have the money they don't care where you obtained the money (at least in our case). The Hud1 statement was the source of the exact amount we owed. We did estimate what we were going to owe with our realtor before hand so we knew about how much we would owe It sucked but it was nice to be out from under that house. We bought in April of 2006 and sold it in Dec. 2009. Good Luck!

I bought in '06 sold in '08 then bought again in '09 then sold in '10. Fixing to buy a 3rd time. Hopefully this will be it since this has been a costly adventure. lol

[piyf]

Originally Posted by shoehoard

Bought my home in Aug 2008 in CT. Husband and I are wanting to move back to FL to be near family. We have been able to pay our mortgage on time every month so we don't have a hardship. We just want to sell. We realize that even with the remodeling we've done, we're still going to take a hit on the sales prices vs. what we owe. We know we'll need to come to closing with money. Just wondering what the viable options are for doing this. I was thinking a personal loan from our bank to cover the difference + realtor commission. What are some other options for getting the money to bring to close. Does the lender care where the money comes from like they do when you are applying for a mortgage? And how does it work when the offer is under what you owe but you aren't doing a short sales? Does the realtor let the lender know that the seller will bring money to close?

Say you agree to sell your home to the seller for 90k. But you owe 100k, you must come up with the difference plus commission fees to both the seller and buyers agent. Which is usually another 6% (3% for seller agent and 3% for buyer agent) unless the seller agent is also the buyer agent then it's 5%.

And good luck not paying some if not most of the buyers closing costs in this day and age. So you're probably looking at 15-20%+ off your selling price.

100k - 20% = 80K

If you agree 10k less than what you owe. Then you're looking at 30k out of pocket come closing. Of course the higher you sell your home the higher the closing costs and agents commissions.

They'll give you or you can ask for a good faith estimate. Call your Realtor now and have him/her work one up based on a certain amount you think you can get for the home. Then when you see what you have to come up with, then do a worst case selling price and one you paying the buyers closing costs (there's a limit of how much you can pay but lets just say 5%)


I could be off since I'm by no means an expert but I've sold 2 homes I've lived in. So just get a good faith estimate for closing costs from your Realtor.

[SOON2BNSURPRISE]

Originally Posted by danieloneil01

I bought in '06 sold in '08 then bought again in '09 then sold in '10. Fixing to buy a 3rd time. Hopefully this will be it since this has been a costly adventure. lol

Wow. All in the same area? We just bought a home and I don't want to repeat that process again any time soon. lol

[rjrcm]

Originally Posted by danieloneil01

...So just get a good faith estimate for closing costs from your Realtor.

Just to avoid confusion on terminology, mortgage lenders are required to give a standard Good Faith Estimate (GFE) to borrowers. Realtors may provide an estimate of closing costs to the seller, which has no standard format, and is not called a GFE.