Can You Give Seller $$ At Closing?
Forgot to mention in my last post. I did send an email to my attorney on this question, but she wants to go through the details when I see her on Sunday (we are personal friends as well). Thought I would ask the question here the meantime.
If my short sale goes through and I get to closing, am I able to give the sellers $$ at closing, or is that not legal. My sense it there may be a problem with that since I would be getting the payoff at a discount. They owe 72,000, the house is valued at $85,000, but that is overvalued, there is probably $20,000 worth of work (retail), we can do for $8,000. Houses are not moving in that area, same homes in the area are up for sale around $82,000 to $84,000 that are in much better shape, but are not moving. They had their house up for 6 months, but did not move. No offers either. I plan on offering 60% of loan balance to start.
Anyway, just wondered if it was OK to give the sellers some $$
Hi Nsor,
Can you give money your seller at closing? Well . . . yes or no, it depends how you do it! It is not a matter of whether it is legal or not, it is simply a demand of the bank. Their position is that if they are cutting their loses and giving you a discount, then why should the seller get money?
If you have agreed to give them seller money, write up a sales agreement between you and them (do not list this on the contract or HUD), that you will buy their Refrigerator, Stove, Washer , Dryer, Riding lawnmower, etc. for the agreed price that they need. You can do this at closing or after they have given you the keys and moved out. It is up to you!
It is always a good deed to give the sellers some kind of money to help them with a fresh start, but dont offer them too much or it will eat into your bottom line. $500-$1500 is a good range that a lot of SS investors stay in!
Best of Success!
BAMZ
[addsig]
And when you take the personal property items get a Bill of Sale which should list the items purchased and the purchase amount..