how can i get a rebate for repairs the legal way at closing

[question mark]

thanks kryzif

thank you kryzif...... you have been more than helpful my friend said she is going to run that by her mortgage broker and her agent and see what they say. you have been more than helpful i really appreciate it.. Im hoping she gets the house because she is a sweetheart. so thanks for your expertise.
Oh and for the record i dont believe in luck! and im definately not irish , im sexy and when your sexy you get what you want with the ladies. our generation call people that want to bring other people down "haters". meaning they dont want to see others do anything or go anywhere in life rather talk them down like they are better than them but hey, if thats how they get their jolleys off so be it. oh well, my life doesnt revolve around some meaningless thread . No what i mean fellas? all i wanted was some good advice and i got it so i am finished talking i just wish i would have gotten it before i had to go through all this drama . once again thanks kryzif.

 

[seniorjudge]

thank you kryzif...... you have been more than helpful my friend said she is going to run that by her mortgage broker and her agent and see what they say. you have been more than helpful i really appreciate it.. Im hoping she gets the house because she is a sweetheart. so thanks for your expertise.
Oh and for the record i dont believe in luck! and im definately not irish , im sexy and when your sexy you get what you want with the ladies. our generation call people that want to bring other people down "haters". meaning they dont want to see others do anything or go anywhere in life rather talk them down like they are better than them but hey, if thats how they get their jolleys off so be it. oh well, my life doesnt revolve around some meaningless thread . No what i mean fellas? all i wanted was some good advice and i got it so i am finished talking i just wish i would have gotten it before i had to go through all this drama . once again thanks kryzif.

Good luck.

Post back when you find out this is a scam.

 

[seniorjudge]

Mark, take a look at this:

https://forum.freeadvice.com/showthread.php?t=224109

 

[seniorjudge]

Seller needs advice to avoid another closing nightmare What is the name of your state? FL My wife and I went to close on a property we owned in FL. The original contract selling price for the house is $197k with $2500.00 total in closing cost resulting in a seller net of $194,500.00. Two days later, the buyer comes back with a new proposed contract changing the selling price to $240k, and indicates he would get a loan for the house at $240k and would like to use 39k to expand the small master bathroom.

My wife and I agreed to the proposed contract. The buyer who used a mortgage broker( that also owns a construction company) told the lender this 39k should appear on the HUD as a construction loan with the 39k proceeds showing on the HUD going to the Mortgage broker aka Construction CO. This Construction CO has also provided the buyer with an invoice for the renovations totaling 39k.

It's closing day, the lender tells the title company they must remove the line item on the HUD with proceeds of 39k to this Construction CO. They instruct the title company that all proceeds must be made out to the "seller", that's my wife and I.

Well, we don't want to be liable for the taxes on 39k or captial gains(any advice??) associated so I request this construction company to provide my wife and I an invoice and request the title company to cut a check to the construction company and list it on the HUD as paying off an "unrecorded lean" at the suggestion of the title company.

The lender sends the approval number or code to the title company approving us to move forward with this transaction...Friday at 4:30 pm

WE CLOSE...I GIVE MY KEYS TO THE BUYER, SIGN ALL THE PAPER WORK AND RETURN BACK TO GA WITH A CHECK.

The next day(saturday-Sun) , the new owner starts the renovation in the bathroom in the house (knocking down walls, tile,plumbing).

On Tuesday, 3 days after closing, I get a call from the title company saying the lender has pulled the funding for this closing. The title company put a stop payment on the checks that were issued ....and essentially washed there hands of it...ADVICE???

As the seller, I now have a damaged house back...What legal rights do I have at this point? This was the most humiliating experience in my life.
Is there some guiding body for title companies or lenders I can report this behavior to? Have I done something wrong???

We are just ORDINARYPEOPLE...THANKS in advance for ADVICE

 

[question mark]

senior judge now you really got me thinking. what does this have to do with anything? what scam are you talking about? are you really trying to help because if you are please just come out and say it because i honestly dont know what you are talking about and if you have any advice it would be greatly appreciated because the friend of mine who is buying the house is very close to me and i dont want her to get scammed. now im not claiming to know a lot about this issue or anything of this matter so please be forthright with what you are saying. I know for a fact because of clintons law that the people selling this house would not have to pay taxes because of clintons law of husband and wife not having to pay 250,000 each on capital gains so its not an insurance scam is that what you are getting at. listen senior judge if you can help with any advice please give it. thanksl

 

[seniorjudge]

What is the name of your state? illinois
my question is this the seller want 275,000 for the house
that appraises for 300,000.
i qualify for 300,000 and the seller said he is willing to give me 25,000 back at closing if i give him 300,000 leaving him with 275,000 which he wants I am putting no money down and am getting 100 percent financing. how can i disclose this so it is legal can we do it for repairs? since i am going to use the 25,000 to remodel the basemant/ can it be done as a concession? i want to do it the legal way. will i have to pay taxes on the 25,000 ? does my lender have to know about the transaction between the seller for it to be legal? if anyone knows please give me some advice for i want to do everything legally thank you.

mark, read your first post. Does your lender have to know about the transaction? Look at the things you are saying.

HG tried to tell you that you need professionals guiding you here. Then yesterday those folks in FL posted their miseries for doing exactly what you want to do!

When you start screwing around with numbers on a settlement statement to make them come out a certain way, you are asking for nothing but trouble.

PghREA also agrees with me. We know what we are talking about. You do not.

Get help in doing this the right way?

 

[question mark]

thank you senior

thank you senior for taking your time it is highly appriciated. so in other words are you saying this transaction can pretty much not be done?

 

[seniorjudge]

thank you senior for taking your time it is highly appriciated. so in other words are you saying this transaction can pretty much not be done?

There are ways to do this; you need a professional's help to do it.

Look at the post of nextwife:
https://forum.freeadvice.com/showthread.php?p=867208#post867208

BUT get someone who knows what he's doing to make sure you do it right!

 

[nextwife]

If indeed, there are legitimate repairs that the seller has agreed to pay, there are ways for them to complete repairs and pay the contractor at closing (if they agree) or place funds into escrow to complete the itemizerd repairs after the fact. Repair escrows are generally 1 1/2 times the estimated cost. In the midwest, certain exterior work is commonly escrowed for work to be done once the weather allows. Concrete work, mudjacking, exterior painting/repairs, grading problems, tuckpointing, etc, are commonly done later in the season (after outside temps are reliably 50 decrees and above) utilizing funds placed iinto a repair escrow by the seller at closing. This IS a reputable way for certain work to be paid by the seller out of proceeds.

 

[question mark]

thank you senior im happy that you were so nice with your response.

 

[seniorjudge]

thank you senior im happy that you were so nice with your response.

nexie was nice too!

You are welcome.

The situation you are describing in quite common and whenever I see it, I try to warn people.

Hint for future: If someone uses the words "creative financing", go elsewhere.