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Old 07-27-2007, 05:26 PM
 
6 posts, read 12,637 times
Reputation: 10
Default Sellers wont lease with purchase

We do not have enough cash to close and are trying to get the sellers to rent. We have a loan commitment letter and have already put 1,500 up front.
It is going to take us at least another month or so to get the rest of closing costs. But the sellers don't seem to want to have us pay them money a month to live there until we can close.What could be my other options>?
Family is not willing to lend me anything, tried Prosper but PA has a 6% cap and my credit is poor. I am only 2,000 from closing this.
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Old 07-27-2007, 05:47 PM
 
Location: NY to FL to ATL
612 posts, read 1,925,348 times
Reputation: 209
Can they raise the price 2,000 and then give it back to you for closing costs?
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Old 07-27-2007, 07:16 PM
 
Location: Montana
2,203 posts, read 6,043,595 times
Reputation: 1022
Are you already under contract? If you are, that's tough because you really should have had the money to close before you entered into the contract. If you haven't negotiated the contract yet, ask the sellers to pay $2,000 of your closing costs. In this slow market, most sellers are willing to do that to get their home sold.

Are you working with a realtor? What are they advising you to do? They're in the best position to be able to help. One possibility is to extend closing another 30 days (without you renting the house).

I'm surprised the sellers aren't being more accommodating. If they have to put their home back on the market, it's going to be a lot longer than 30 days before they'd have it sold and closed.
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Old 07-27-2007, 08:52 PM
 
Location: Northern, VA
980 posts, read 2,020,372 times
Reputation: 519
Cat,

It sounds like you'd like to do a pre-settlement occupancy (live in the house one month before settlement)? If so, my guess is that the sellers agent scared the seller with a horror story about pre-settlement occupancy. I have found that sometimes when agents don't know how to handle a situation they give their client reasons why something is bad, instead of looking for ways to make it all work out.

In the brokerage I'm affiliated with, our broker will call the opposing agents broker to explain the situation. He asks the other broker to explain to his/her agent why everyone needs to work together to get the transaction to close. Maybe you should ask your agent to do that. I think there's a perception that broker's should only be involved when something is wrong, but that's not the case.

From what I'm hearing and reading, we're all having similar experiences in this market. Gretchen hit the nail on the head. It's in the sellers best interest to make the offer you made them work.
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Old 07-27-2007, 08:57 PM
 
79 posts, read 141,260 times
Reputation: 39
dlh891,
Isn't that mortgage fraud?

Last edited by Barbara Scholz; 07-27-2007 at 08:58 PM.. Reason: forgot quote
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Old 07-27-2007, 09:06 PM
 
79 posts, read 141,260 times
Reputation: 39
Default Why sellers may not budge

Quote:
Originally Posted by catgirl41 View Post
We do not have enough cash to close and are trying to get the sellers to rent. We have a loan commitment letter and have already put 1,500 up front.
It is going to take us at least another month or so to get the rest of closing costs. But the sellers don't seem to want to have us pay them money a month to live there until we can close.What could be my other options>?
Family is not willing to lend me anything, tried Prosper but PA has a 6% cap and my credit is poor. I am only 2,000 from closing this.
First, you only put up 1,500, if the sellers let you rent(lease) a month, you could more damage in that time than the 1,500.

They could also have another offer waiting on yours going bust.
What I don't understand is that your lender should have gave you a good faith estimate which would have showed you estimated closing costs. What happened?

If you have realtors working with you, see if they will give up part comission toward you closing and see if lender can adjust some of their fees. But if no to all of that, you should be able to get you deposit back due to inability to get the loan. Can you put your closing fees into the loan, should only raise the payment a little if you that close?

It is too late to re-negot. with sellers, they are more that likely mad at you folks because this went this far. Could you use a credit card to pay ie inspections and appraisal, or cash advance?
Good luck
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Old 07-27-2007, 09:24 PM
 
Location: Northern, VA
980 posts, read 2,020,372 times
Reputation: 519
Barbara,

I don't think it's fraud if the house appraises for whatever the sales price is, and as long as the lender approves of the amount requested for settlement. I have had a loan officer call me and tell me a house appraised at one price but he asked me to write the contract at a higher price so that our mutual clients could get cash back at closing. THAT is fraud.

I think dlh is saying: A buyer makes an offer of $100,000 + 2 grand in closing on a house that was listed for $110,000. The buyer has already made a low offer; the seller doesn't want to throw in the extra money for closing. Instead of rejecting the offer, or taking even less money by paying the closing costs, the seller counters the offer at $102,000 and pays the $2000 in closing. The lender approves because the closing costs don't exceed 3% of the loan balance (or whatever their cut off for closing help is).
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Old 07-27-2007, 09:51 PM
 
79 posts, read 141,260 times
Reputation: 39
Tish,

See I did not get all that from DLH, too general. But I'd rather ask than get involved in a fraud situation. But in your instance it is not fraud. Thanks
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Old 07-28-2007, 07:05 AM
 
Location: NY to FL to ATL
612 posts, read 1,925,348 times
Reputation: 209
Quote:
Originally Posted by Tish Thompson View Post
Barbara,

I don't think it's fraud if the house appraises for whatever the sales price is, and as long as the lender approves of the amount requested for settlement. I have had a loan officer call me and tell me a house appraised at one price but he asked me to write the contract at a higher price so that our mutual clients could get cash back at closing. THAT is fraud.

I think dlh is saying: A buyer makes an offer of $100,000 + 2 grand in closing on a house that was listed for $110,000. The buyer has already made a low offer; the seller doesn't want to throw in the extra money for closing. Instead of rejecting the offer, or taking even less money by paying the closing costs, the seller counters the offer at $102,000 and pays the $2000 in closing. The lender approves because the closing costs don't exceed 3% of the loan balance (or whatever their cut off for closing help is).
Thank you. I didn't think what I said could be interpreted any other way than exactly that. I guess I'll have to be more careful in the future.
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Old 07-28-2007, 07:09 AM
 
Location: NY to FL to ATL
612 posts, read 1,925,348 times
Reputation: 209
Quote:
Originally Posted by Barbara Scholz View Post
Tish,

See I did not get all that from DLH, too general. But I'd rather ask than get involved in a fraud situation. But in your instance it is not fraud. Thanks
Sorry I didn't clarify more. My mind does not even wrap around doing anything illegally so I assumed everyone would know how I meant it.
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