Posted on: 07th Feb, 2008 10:36 am
my asking price for a house (a flipper) that i'm selling is $94,500. th buyers have offered $90,000, and me paying 3% closing. the buyers are getting a conventional loan. i'm assuming their loan closing costs are around $5,000.
would it be a violation of any law to offer to seller finance for sixty days at $92,000. have the buyers sign a promissory note to pay the loan in sixty days, giving them time to refinance with closing costs in the $300 to $400 range. they're already approved for $90, 000 with their bank.
this would save them $2500, and i would receive an extra $2000.
would it be a violation of any law to offer to seller finance for sixty days at $92,000. have the buyers sign a promissory note to pay the loan in sixty days, giving them time to refinance with closing costs in the $300 to $400 range. they're already approved for $90, 000 with their bank.
this would save them $2500, and i would receive an extra $2000.
Hi Gary,
Welcome to the forum.
Law varies from state to state. It actually happens that seller pays the closing cost on behalf of the buyer but I don't know is it legal in your state or not? I think you should consult with an attorney.
Thanks.
Larry
Welcome to the forum.
Law varies from state to state. It actually happens that seller pays the closing cost on behalf of the buyer but I don't know is it legal in your state or not? I think you should consult with an attorney.
Thanks.
Larry
What state are you from? You will get more information if you let us know what state you are from.
I don't know but would you really call this seller financing? Anyway, it's goofd that the buyers have been approved for the loan, so there won't be worries regarding the money. But I feel you should talk to an attorney about the laws. I'm not aware of such laws.