Posted by ThomasBR on January 14, 2001 at 24:07:50:
You don’t find this as exciting and helpful?
First mortgage payment isn’t due for 30 days
after closing. If I make the first payment for
them, that means they don’t make a payment for
almost 60 days.
Is This Illegal??? - Posted by ThomasBr
Posted by ThomasBr on January 13, 2001 at 13:12:19:
I want to do an option with sellers, find a
buyer, then sell to buyer.
I want to make it more exciting for the buyer by
making his first loan payment for him.
It doesn’t sound like a problem but just wanted
to make sure.
Also what kind of contract do I sign with the
buyer to give him the assurance that I can and
will make the payment for him?
Thanks
Tom
Re: Is This Illegal??? - Posted by SCoo85
Posted by SCoo85 on January 14, 2001 at 08:56:02:
Settle on the 1st of the month and make their prepaid interest payment for them and you just made their first payment in full. First payment not due for 60 dyas.
Steve
Re: Is This Illegal??? - Posted by JohnBoy
Posted by JohnBoy on January 13, 2001 at 18:43:45:
Just put it in with the purchase contract that seller agrees to pay buyer’s first mortgage payment. At closing the amount of that payment would be deducted from the proceeds and given to the buyer at that time. The money is given to the buyer and is theirs to with as they please, whether that be use it to pay the first payment when it comes due or spend it on something else. At that point it doesn’t matter, you delivered what you agreed to to do.
Re: Is This Illegal??? - Posted by Houserookie
Posted by Houserookie on January 13, 2001 at 15:24:28:
Not that I know of. But u might want to ask
Jpiper, Johnboy, and Bronchick on this one.
Re: Is This Illegal??? - Posted by Houserookie
Posted by Houserookie on January 14, 2001 at 09:15:17:
Hey Steve,
Don’t let the secret out of the bag…
: )
To: Johnboy Is This Illegal??? - Posted by ThomasBr
Posted by ThomasBr on January 14, 2001 at 24:04:28:
Will this cause any problem with the bank
to get the loan in the first place?
This is kinda like getting cash back at closing.
Couldn’t the investor use this strategy to get
cash out a closing too? You could negotiate to
have seller make so many payments for you, or
just X dollar amount.
Thanks
Re: WHY??? NT. - Posted by ThomasBr
Posted by ThomasBr on January 13, 2001 at 16:47:00:
Why? Because I want to get it sold fast. And
a good way lock in the buyer.
I don’t know too many sellers that will offer to
make a first payment for people to buy a new home.
Have you tried such a thing?
Re: To: Johnboy Is This Illegal??? - Posted by JohnBoy
Posted by JohnBoy on January 14, 2001 at 24:26:27:
It would all depend on the lender. I can’t see where a seller offers to make the buyers first mortgage payment to be a big deal. You are talking about one payment, not giving the buyer $10k back. Sellers give repair and carpet allowances all the time. One, two or three payments being offered as an incentive to buy a house would be less than the cost of replacing carpet and appliances in most cases. If the bank allows that, then why wouldn’t they allow this? The main thing is that you disclose everything in the purchase agreement.
Re: WHY??? NT. - Posted by Tom
Posted by Tom on January 13, 2001 at 20:51:16:
Can’t see to many buyers getting excited over it. I doubt that it would cause someone to fall in love with a house. What motivates buyers is usally the right house at the right price.