Writing contract up with seller rebate. Need help. - Posted by Dave J

Posted by BIGDADDY(MD) on July 17, 2002 at 21:58:03:

You need to check the legalities of doing rebate’s. To my knowledge you can’t do them legally and even if you could any lender with 1/2 a brain is going to shoot the bird outta the sky quicker than you can imagine. They would more than likely reduce the loan amount by that amount. I could be wrong, so check, but I have a sneaking suspicion that I’m not.
Good Luck

Writing contract up with seller rebate. Need help. - Posted by Dave J

Posted by Dave J on July 17, 2002 at 14:17:27:

I’m writing a contrct up to firm up a verbal agreement that I have with a seller. I’ve got multiple calls in to my attorney without a call back so far. I need to tie this up now. We agreed to all these details I am just having trouble putting it on paper.
The deal:
Agreed on 93k
Writing it up for 100k
Buyer to carry back a note for 20K
I’ll aquire a new 1st for 80K
We’ll split closing costs
Buyer will pay 7K to seller for misc redecoration. :wink:

How do you include a seller concession in the contract?
My P/S agreement has the breakdown for the normal deals
Purchase Price =
earnsest money =
New loan=
Assumtion of new loan=
Seller financing=
Cash at closing=

Now do I do write?
Purchase price =100k
Earnest Money= 1,000
New loan= 79k
Seller financing=20k
Cash at closing= -7,000
total 93k

The problem I see is that the deal gets recorded as 93 and then I might have PMI on the 80k note.
Any insight into writing this up properly would help. I know that I should consult with a local attorney but I’m working on that.