Posted by Hank FL on January 13, 2004 at 08:36:34:
I knew I was missing something very basic last night.
With fresh eyes, it seems like that 38k for prsonal property plan MIGHT work if the sellers are rolling in dough.
Seems like the seller should guide buyers to his mortgage broker that is rolling in programs from lenders that won’t bust chops over this.
Geez, I SHOULD know this/Is there a law? - Posted by Miguel (N. CA)
Posted by Miguel (N. CA) on January 12, 2004 at 18:16:40:
Hey everyone!
Ok, I’m in my fourth year of doing this CRE stuff so I’m thinking I SHOULD know the answer to this question already. Maybe I once knew and just plain forgot 'cause I’m getting old…that could be it.
Ok, this property I’m selling was to close this week. Then that ol’ title seasoning issue came up. You know, buyer’s lender won’t lend on a property that was bought less than a year ago for more than a 10% difference from current selling price.
I know it’s kinda commom for lenders to do this, but this is the first time this issue has come up for me.
Selling price is $389,000. Lender says they’ll do it if I lower price to $351K. Yeah, right.
Anyway, if the buyer agrees, is there anything wrong for selling it at this discounted price and getting the difference outside of escrow?
I mean, is it illegal? just frowned upon? or is it lovingly embraced by all members of the RE/Lending community? Is there a law against it? Will I go to jail? Will I do community service?
I know I’ll get some quick answers from you guys…and gals, so thank you very much in advance!
Miguel
Re: Geez, I SHOULD know this/Is there a law? - Posted by Brent_IL
Posted by Brent_IL on January 12, 2004 at 22:36:44:
In addition to furniture, I?d throw in a non-compete and an on-call management service contract to break the $38,000 into smaller pieces. The buyer might have to ask for a higher LTV if they don?t have a bunch of cash.
You’ll pay the same taxes anyway.
Re: Geez, I SHOULD know this/Is there a law? - Posted by GL(ON)
Posted by GL(ON) on January 12, 2004 at 21:22:12:
You could sell him the house for $351000 and the furniture for $38000. Would that do?
38k for personal property ? - Posted by Hank FL
Posted by Hank FL on January 12, 2004 at 22:29:00:
That’s a take-off on the 1k or so for personal property, short sale, no $ to the sellers on the HUD, “walking money” thing.
If one can do it with 1k, why not 38k ???
I’m tired and not thinking as clearly as I should, but… can it be that easy to overcome a b_tchy lender ?
Re: 38k for personal property ? - Posted by Brent_IL
Posted by Brent_IL on January 12, 2004 at 22:42:39:
I think the lender wants to make the loan, since they said they’d give it to the buyer if it fit within their guidelines. The external agreements are handled by the closing agent, but outside of the escrow for the house. I’ve made an initial deposit of 30% of the purchase price, but I’ve never made a 30% down payment.