Seller credits

We are in contract for a house listed at $254,900. It appraised for $258,000

We put $25,490 down and negotiated a sellers credit of $59,900 after seller failed to disclose they had existing septic tank inspection and we coincidentally hired the same company that was hired by previous potential buyers for our inspection to find out we need to update leach field at some point( not failing, just has an old leach field with a new tank).

Our mortgage company told our lawyer that they were unaware of the extent of the credit ($59,900.00) and would have to reach out to a few of her colleagues, in order to let us know the correct verbiage required for the addendum, so as not to raise any unnecessary red flags on their end. We did explain that the matters for which the credit would be issued were not failed items, but rather that we are choosing to improve certain items on the property.

We did mention those items were improving the recovery rate on the well and upgrading the leaching field.

Is there a way to work this into a deal with an addendum and putting the money into escrow for repairs ? The sellers are already onboard. Is there a standard for such a thing? Why would this be an issue for the mortgage company?

submitted by /u/marimichelleg
[link] [comments]

We are in contract for a house listed at $254,900. It appraised for $258,000 We put $25,490 down and negotiated a sellers credit of $59,900 after seller failed to disclose they had existing septic tank inspection and we coincidentally hired the same company that was hired by previous potential buyers for our inspection to find out we need to update leach field at some point( not failing, just has an old leach field with a new tank). Our mortgage company told our lawyer that they were unaware of the extent of the credit ($59,900.00) and would have to reach out to a few of her colleagues, in order to let us know the correct verbiage required for the addendum, so as not to raise any unnecessary red flags on their end. We did explain that the matters for which the credit would be issued were not failed items, but rather that we are choosing to improve certain items on the property. We did mention those items were improving the recovery rate on the well and upgrading the leaching field. Is there a way to work this into a deal with an addendum and putting the money into escrow for repairs ? The sellers are already onboard. Is there a standard for such a thing? Why would this be an issue for the mortgage company? submitted by /u/marimichelleg [link] [comments]

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