Seller Contribution-What is it exactly? (contingent, incentive, disclosure, agents)
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Mortgage fraud? Please, I just made a counter offer on a property, and my agent told me to ask for the concessions, and I talked to the bank, and they told me that is a good suggestion.
I'm 100% able to pay for this house in cash, so there is no fraud. Its a negoating tactic and in my case I'm using it to offset repairs the property need.
Whats the "Fraud" if its legally allowed?
The issue isn't concessions, PQ, it's how they concessions are conveyed to the buyer.
If they're conveyed to the buyer in a non-transparent manner (i.e., not clearly identified as such on the final HUD), then it's mortgage fraud.
It happens all the time, particularly when the seller is a FSBO and doesn't know any better. Unfortunately, while the FSBO seller may be an unwitting conspirator, he's a conspirator just the same - and ignorance of the law isn't an excuse in the eyes of most judges (although it should help at sentencing time).
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,588,796 times
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Guys...
Countrypooh is also in FL...has it occurred to any of the realtors that just slammed him/her that perhaps since FL market has tanked, they may not be able to afford a realtor now???
It may not just be an "avoid the commission" type reason, at least in my case in GA it's not...I'd love to have representation, but just can't see walking away owing $12-16k if I had to pay a realtor...
Countrypooh is also in FL...has it occurred to any of the realtors that just slammed him/her that perhaps since FL market has tanked, they may not be able to afford a realtor now???
It may not just be an "avoid the commission" type reason, at least in my case in GA it's not...I'd love to have representation, but just can't see walking away owing $12-16k if I had to pay a realtor...
just some food for thought...
Sure...and she couldn't afford to pay for the appraiser that provided her comps, or the title company if she's required to use one, or the excrow attorney, or the lender that she has to pay back.
I can't "afford" auto insurance or health insurance but, ya know, I pay for it anyway.
No one is slamming her...but do you really think that someone who's asking the most basic of questions on an Internet site should be selling as a FSBO? Read her posts - it's like she's got a sign saying "Rob me!" There's no way she can get all the advice she needs here.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,588,796 times
Reputation: 677
Quote:
No one is slamming her...but do you really think that someone who's asking the most basic of questions on an Internet site should be selling as a FSBO?
I think the wording "seller contributions" would throw anyone off...heck, I went to real estate school and wasn't sure what she meant by that until I realized it was the same as seller concessions (ie closing, etc)...
Quote:
Sure...and she couldn't afford to pay for the appraiser that provided her comps, or the title company if she's required to use one, or the excrow attorney, or the lender that she has to pay back.
Right, hopefully she has figured all that in, but not everyone has the extra money to hire an agent...that's all...
Mortgage fraud? Please, I just made a counter offer on a property, and my agent told me to ask for the concessions, and I talked to the bank, and they told me that is a good suggestion.
I'm 100% able to pay for this house in cash, so there is no fraud. Its a negoating tactic and in my case I'm using it to offset repairs the property need.
Whats the "Fraud" if its legally allowed?
If it's legally allowed by the lender and fully disclosed to the lender everything is legal. However seller paid down payment, is a common scam. There are one or two legal ways to do this still, but there are very specific guidelines regarding this. And last I heard all of these programs are being done away with soon, there was a moratorium on them for some time in the courts, only recently was it lifted until a final legal decision is made early next year.
It is perfectly normal to ask for seller paid closing costs however (also can be called concessions or assistance) and I'm sure that is what your realtor suggested. It only raises my eyebrow when they aren't putting any money down, or they have a weak pre-qual or weak offer.
In ANY event, if a buyer is asking for 10% in "seller concessions" "seller assistance" or whatever else you want to call it, I'd question whether the offer is legit.
Good luck to the OP, alot of people can successfully sell on their own. But this is such a simple question, I'd hate to see what you don't even know to ask.
The issue isn't concessions, PQ, it's how they concessions are conveyed to the buyer.
If they're conveyed to the buyer in a non-transparent manner (i.e., not clearly identified as such on the final HUD), then it's mortgage fraud.
It happens all the time, particularly when the seller is a FSBO and doesn't know any better. Unfortunately, while the FSBO seller may be an unwitting conspirator, he's a conspirator just the same - and ignorance of the law isn't an excuse in the eyes of most judges (although it should help at sentencing time).
Well i dont consider "kick backs" as concessions.. they are a world of differences. Kickbacks, not disclosed is fraud, disclosed as a concession they are not fraud and totally legal.
Countrypooh is also in FL...has it occurred to any of the realtors that just slammed him/her that perhaps since FL market has tanked, they may not be able to afford a realtor now???
It may not just be an "avoid the commission" type reason, at least in my case in GA it's not...I'd love to have representation, but just can't see walking away owing $12-16k if I had to pay a realtor...
just some food for thought...
Quite honestly, it's not our problem. I know it seems callous but we are paid because of our knowledge to help the client and the time we spend doing so. If we give that away, we have no value. If he needs help which he clearly does, he should hire a Realtor. It's not Realtors fault the market is bad in some areas. Real estate, like stocks, bonds, etc. is cyclical. It's unfortunate that some people get stuck but we do what we can and go forward. It's life.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,588,796 times
Reputation: 677
Quote:
You're kidding me, right?
Swear to God! I've never ever heard anything termed as quote "seller contributions"
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