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:
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!