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Curious of what the pro's think about a buyer submitting an amendment after the original contract has been agreed to & signed with all contingencies removed. The buyer is now submitting an amendment asking for some of their closing costs be paid. It seems very sleazy in my opinion to come back after the fact and obviously I will not agree and personally do not care if I sell the house or not- so would I get the earnest money if they back out now? It really isn't enough to compensate me for my troubles and the house being "under contract" for the past few weeks but I should be compensated for my troubles regardless. I don't see what options they have.
Curious of what the pro's think about a buyer submitting an amendment after the original contract has been agreed to & signed with all contingencies removed. The buyer is now submitting an amendment asking for some of their closing costs be paid. It seems very sleazy in my opinion to come back after the fact and obviously I will not agree and personally do not care if I sell the house or not- so would I get the earnest money if they back out now? It really isn't enough to compensate me for my troubles and the house being "under contract" for the past few weeks but I should be compensated for my troubles regardless. I don't see what options they have.
This all depends on where you are and State law and local customs.
It depends. Some forms of mortgage like a VA may require you pay certain costs. No pay no financing and generally that will not get you the earnest money.
Practically it can be difficult to get at earnest money. Basically the other side has to agree to give it to you or someone has to go to court. And be careful...some of the ways it ends up in court will eat up the earnest money before anyone gets at it...legal fees.
Have you talked to your agent about this. A knowledgable agent may know or may know where to get the information on how to proceed.
I've learned a saying from our SE Indian community when it comes to contracts.....
"First you catch the fish, then you filet the fish." You are being fileted after going under contract.
You must learn to say no or they will continue to ask. Many cultures you negotiate contracts until the day of closing. (and sometimes after).
They may even refuse to close unless you give more, more then even more. Just say NO.
According to my agent that the amendment is carrying the $1K credit from the inspection notice ( I agreed to pay $1K for repairs) has to be put on an amendment because the lender does not receive inspection docs so it needs to go on doc. Doesn't the lender see the contract & see the $1k is applied to repairs? I am not comfortable signing a vague amendment because once I do then I am committed to it. I don't understand why there cannot be a more thorough explanation to make all parties comfortable. A credit in lieu of repairs happens all the time I bet- then why not have a verbal discussion & then when agreed put repair credit in closing credit if such an issue with lender? Everybody wants everything in writing then I want it in writing exactly what is happening.
According to my agent that the amendment is carrying the $1K credit from the inspection notice ( I agreed to pay $1K for repairs) has to be put on an amendment because the lender does not receive inspection docs so it needs to go on doc. Doesn't the lender see the contract & see the $1k is applied to repairs? I am not comfortable signing a vague amendment because once I do then I am committed to it. I don't understand why there cannot be a more thorough explanation to make all parties comfortable. A credit in lieu of repairs happens all the time I bet- then why not have a verbal discussion & then when agreed put repair credit in closing credit if such an issue with lender? Everybody wants everything in writing then I want it in writing exactly what is happening.
The standard problem is that the lender will require any repairs needed to be completed before close. So the standard way of avoiding that is to simply lower the price an offsetting amount.
The standard problem is that the lender will require any repairs needed to be completed before close. So the standard way of avoiding that is to simply lower the price an offsetting amount.
Perfectly reasonable.
No, lenders will not typically require repairs to be completed for a mortgage UNLESS it is an FHA or VA loan and then it's only some types of repairs (and even those loan types are far less strict than in the past).
OP--Lenders will not permit you to give the buyers $1000 for repairs as a credit for such. If lenders see any reference to repairs it will raise red flags for the mortgage, and the lender a may decide at that point to see the inspection. This starts an entire new chain of problems, and the lender may not approve the mortgage.
Lenders will allow closing costs. The type of amendment you are referencing happens frequently as a way around the repair problem. The amendment just needs to specify closing costs in lieu of any repairs. Then it works. I learned this technique directly from a lender a number of years ago when lenders stopped allowing any credits for repairs to appear in the contract.
If a buyer can't get the loan, they typically get the earnest money back. If you don't sign this amendment the buyer can simply send the agreement about repair costs to the lender so the loan is more likely to be denied.
Ok- thank you so much for the explanation- my agent should have called me first & explained what was coming so I did not freak out thinking the buyers were trying to gouge me for one last time.
No, lenders will not typically require repairs to be completed for a mortgage UNLESS it is an FHA or VA loan and then it's only some types of repairs (and even those loan types are far less strict than in the past).
OP--Lenders will not permit you to give the buyers $1000 for repairs as a credit for such. If lenders see any reference to repairs it will raise red flags for the mortgage, and the lender a may decide at that point to see the inspection. This starts an entire new chain of problems, and the lender may not approve the mortgage.
Lenders will allow closing costs. The type of amendment you are referencing happens frequently as a way around the repair problem. The amendment just needs to specify closing costs in lieu of any repairs. Then it works. I learned this technique directly from a lender a number of years ago when lenders stopped allowing any credits for repairs to appear in the contract.
If a buyer can't get the loan, they typically get the earnest money back. If you don't sign this amendment the buyer can simply send the agreement about repair costs to the lender so the loan is more likely to be denied.
Four paragraphs to agree.
Nothing wrong with lowering the price. Or with providing closing costs.
Nothing wrong with lowering the price. Or with providing closing costs.
Apparently your 3 sentences were insufficient in explaining it in such a way that the OP could understand and learn. That's okay. My business is providing direction that allows people to learn and understand.
Apparently your 3 sentences were insufficient in explaining it in such a way that the OP could understand and learn. That's okay. My business is providing direction that allows people to learn and understand.
Then why would you write boiler plate?
Simple one liner...
If you include a repair credit you will screw up the mortgage. So lower the price some way.
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