Posted on: 18th Aug, 2008 03:26 pm
Hi,
My client and I found a new build in CA. The builder was willing to give 6% concession to my client on teh purchase contract provided she pre-qualified with the builders lender and the lender could not beat or match her 3rd party offer.They required a GFE, TIL and 1003. While my client and I are confident in the 3rd party offer....
Is this legal????
My client and I found a new build in CA. The builder was willing to give 6% concession to my client on teh purchase contract provided she pre-qualified with the builders lender and the lender could not beat or match her 3rd party offer.They required a GFE, TIL and 1003. While my client and I are confident in the 3rd party offer....
Is this legal????
Hello.
If the third party offer is better than why would you go with the biulder's lender?
If the third party offer is better than why would you go with the biulder's lender?
It is a violation of RESPA to require a borrower to use the lenders builder. A call to HUD would clear it up......
Some builders around here offer concessions when buyers use their preferred lenders fairly frequently. If the buyer wants to use their own lender. these concessions are redeuced or sometimes taken away.
I assume the builders already have these concessions already built into the price of the house, so if a buyer is not using builder's lender, theoretically the builder could reduce the asking price...but this never happens. I assume it is legal. There are some builders who will still give the concessions if a buyer threatens to walk away from the deal.
I assume the builders already have these concessions already built into the price of the house, so if a buyer is not using builder's lender, theoretically the builder could reduce the asking price...but this never happens. I assume it is legal. There are some builders who will still give the concessions if a buyer threatens to walk away from the deal.
Thank you for all your feedback, it is very appreciated
the enticement of the 6% is tied to qualifying with the lender. should you go with any other lender, you'll forgo that benefit.
bailey may have a good point concerning the builder's position on the concession. perhaps if you're going to walk away rather than use their lender you may still have a shot at the concession.
bailey may have a good point concerning the builder's position on the concession. perhaps if you're going to walk away rather than use their lender you may still have a shot at the concession.
