Posted by JPiper on June 05, 2000 at 19:56:17:
Hate to be a pest on this, but I want to make sure you understand that the fact that a “mortgage broker winks” or a Realtor suggests it, or someone tells you it’s done all the time (my guess is it is)…it’s still lender fraud. That could carry a rather severe penalty. Something to think about.
JPiper
Can I do this… - Posted by ANT-NJ
Posted by ANT-NJ on June 04, 2000 at 21:53:31:
I am in the process of purchasing a townhome as a rental, I know the owner and he is being helpful with creating a deal for me with little out of pocket, but here is my question…
Can I add a clause in the sales contract that states he will give say $1,500 for buying the property.
Sheets mentions this in his no money down video but then does not elaborate on it. He said he and others have done this.
Can this be done? Is it “legal”?
Please help! Getting closer.
Re: Can I do this… - Posted by Jason Perry_NH
Posted by Jason Perry_NH on June 05, 2000 at 08:27:20:
Another suggestion is that you add a seperate addendum form that states that fact that you will be receiving $x at closing (or after etc)-- Be sure to mention the p&s on the addendum, but don’t put the terms specifically on the p&s – this way you are covering yourself, but, should you choose to use a lender, they won’t see this money coming back to you. We recently did a deal, actually through a realtor, where we gave back over $10k for repairs, etc (essentially a no down deal), but the bank would not let that fly.—Again, its legal, but it sure doesn’t make your life easier with the bank.
Jason Perry
Re: Can I do this… - Posted by phil fernandez
Posted by phil fernandez on June 05, 2000 at 06:33:32:
I would be careful in the wording of the clause with the seller giving you $1,500 at closing for buying his place. If you aren’t a licensed real estate agent. Instead of a selling commission why not put in a clause stating that at closing you will get credited the $1,500 as a “repair credit”.
Re: Can I do this… - Posted by JPiper
Posted by JPiper on June 05, 2000 at 10:44:00:
Having a separate addendum that you don’t show the lender is lender fraud.
JPiper
Re: Can I do this… - Posted by Ant-NJ
Posted by Ant-NJ on June 05, 2000 at 09:34:08:
thanks jason but what exactly is p&s. The owner is already picking up closing costs so this will have to be a separate clause. Did that deal you stated fly or did the bank not allow you to do it as stuctured? What clauses did you use?
What about seller pays closing costs up to $1500? (nt) - Posted by Ben (NJ)
Posted by Ben (NJ) on June 05, 2000 at 08:19:59:
nt
Re: Can I do this… - Posted by Jason Perry_NH
Posted by Jason Perry_NH on June 05, 2000 at 19:38:57:
P&s = purchase and sales contract.n I had no problem – I have done this 3
times in the past 6 months. Judging from the response to my post – maybe I
shouldn’t have, but all worked out fine – Actually, the first deal I did, I
told my mortgage broker that I was going to (on this deal) get money back,
so I was essentially doing a no money down deal, and he told me "–I dont
need to know that–wink ,wink – he had no problem with it, just don’t
advertise it, and definately don’t put it on the p&s, because the bank will
see it, and they can tell you no way. No particular clauses, just I reserve
the right to get financing that was acceptable to me( pretty vague, but it
works) – On yours you could use that addendum to spell out exactly what
would happen.Just my experience… Good luck.
Actually I Like Ben’s Clause Better nt. - Posted by phil fernandez
Posted by phil fernandez on June 05, 2000 at 09:19:44:
nt.