Hey all. I’m from CA and planning on purchasing a home. What I wanted to do is purchase a house approx. 20K above their selling price and amend the contract so that I can list repairs that needs to be made and get the 20K back in a form of a cashiers check from escrow. Is this legal?
Thanks,
J
There are no lenders who will allow this unless it is a rehab loan
jorai,
rbaxter is correct, but we do this all the time at the investment firm I work at, the repairs must be done before the loan closes. There are ways around it, if you trust your realtor (if using one) and all parties agree, you can up the commission for the realtor and have them give it to you at the end, but make sure you trust the realtor, or if the buyer is willing to give you the money at the end outside of escrow, but this is very risky. hope this helps.
Hi, new to this board, have been reading everything about sub2’s since I am involved with a situation like that, but on the foreclosed side, with me the person foreclosed on.
Anyway, in response to your posting. Usually when I have a buyer who needs funds credited back for repairs, yes, lenders do not like to see that and it raises a red flag.
But the credit back can be worded in escrow as a non-recurring closing cost, and then there is no problem.
Hope this made sense. :o