Cash Back AT Closing
I'm considering buying a condo on miami beach. They are asking for 225k, but it should appraise for 265k. I am going to offer 225k to the seller, but I want to write the contract for 265k and have the contract say that anything above 225K goes to the buyer for expenses. Is this legal? Has anyone here done this? What are the pros and cons?
in my experience, it depends on the lender... most won't let you. =I
I already found a lender I can do it with. Any downside to this?
sounds like a big red flag to me.....but if your lender says it's ok, I guess he would know better than me.
I have a friend who does it all the time; in fact, that is how he operates his business. And actually, you are being more honest and upfront about it because he does it to where the lender does not know about it. He makes the agreement directly with the seller....now, that is kind of shady. In your situation, as long as the lender is involved and it the property is appraised for that amount, it looks like you have extra cash to put back into the property or another investment. Sounds like creative financing to me.....
Hello, I am a motgage broker in Lancaster Pa. I am looking to buy a few properties from a couple who just want out. Theyre looking to sell properties appraised at 39k around 32. Who are the lenders who will do the upfront cash? Will they handle this small of a loan amount? Tom
If you have a friend that does it...ask him who he does it through. Tom
Quote:
On 2004-06-19 08:27, raquel1094 wrote:
I have a friend who does it all the time; in fact, that is how he operates his business. And actually, you are being more honest and upfront about it because he does it to where the lender does not know about it. He makes the agreement directly with the seller....now, that is kind of shady. In your situation, as long as the lender is involved and it the property is appraised for that amount, it looks like you have extra cash to put back into the property or another investment. Sounds like creative financing to me.....
Sounds like loan fraud to me. Ever read the notice at the bottom of the HUD-1?
Nancy
Folks,
If you want to shop for lenders, go to the Lenders tab at the top of the page.
Nancy