Anyone hear of this? Real estate related

[luvwinnie]

buyer of my parents' home owes $7000 in child support so they want to borrow $7000 more than asking price...lawyer said it doesn't affect mom at all...and it's done often...he must be a real winner!

 

[Disney Doll]

Yes, that is done quite often. My DH is a realtor and people often build in the closing costs into their mortgage amount. Of course, then you're paying it for 30 years(or however long your mortgage is for) which seems kind of silly to me, but perhaps this gentleman is going to be getting into some trouble soon regarding child support issues if he doesn't come up with a big chunk of money soon and this is the only way he can do it.

 

[bsnyder]

If there's enough value in the house, then this is perfectly okay.

 

[JAP]

If a borrower has enough equity in their home and they refinance to pay off existing debts, it is legal.

I think it is great that the guy wants to pay his child support. However, the catch is the title company has to send the payment to the correct authority for disbursement. He just cannot get the cash.

 

[LunarLady]

What amazes me is that it should be none of the seller's business how much into debt the buyer goes into. Who's loose lips let that secret out of the bag, and can the buyer now sue someone for defamation of character?

As long as my house is sold and the buyer comes to the table with the correct amount of money, then I don't really care how much he/she's financing.

 

[aahmom1]

You can borrow money for anything (short of it being illegal) the bank doesn't care, they're going to make interest off of that money.

 

[luvwinnie]

SHE had to ok it, which I don't understand at all. The guy has no equity in the house except the $2000 he's putting down.

 

[aahmom1]

What amazes me is that it should be none of the seller's business how much into debt the buyer goes into. Who's loose lips let that secret out of the bag, and can the buyer now sue someone for defamation of character?

As long as my house is sold and the buyer comes to the table with the correct amount of money, then I don't really care how much he/she's financing.

I was totally thinking the same thing, it has nothing at all to do with your Mom, she shouldn't even know about it.

 

[aahmom1]

The only people who should have to ok it is the insurance company who is going to insure the loan. Once it's sold it's not your Mom's concern.

 

[JAP]

aahmom1 is correct. It is none of the Seller's concern where the Borrower gets his money or what the money will be for (all legal of course).

The only reason a Seller would have to approve anything for their Buyer would be if they were providing Seller financing.

 

[marlasmom]

It changes the purchase and sale agreement to raise the price of the house and the agreement of the seller to give back $$$$ as "closing costs." Somebody mentioned to her why he needed the extra $ which was not necessary.

 

[coqui]

People do this all the time. Usually they borrow to make any immediate repairs needed to the house.

 

[Talking Hands]

Done all the time. Seller would have to agree to any changes in the contract so that is why your Mother had to ok the change but the reason for the extra money did not need to be revealed. As long as she is not holding the first or any secondary mortgages it should not be a problem for her.

 

[annemariec]

Did your mom have to change (increase) the purchase price of the house? If she did raise it by $7,000 someone dropped the ball on the appraisal for her. That's a pretty big margin.

If that's the case it effects your mom's profit margin.

Annemarie