Offered money to buy a house, seller is asking for more to cover gap between their listing and mortgage owed
I am purchasing a house, and apparently the seller owes more on it than what he listed it for. His realtor is now asking me if I can come up with 4000 dollars to be able to close. Is this legal? If I don't come up with this money (that is technically not my responsibility) will the deal really fall through?
house
edited 1 hour ago
Tas
1735
asked 4 hours ago
user83725user83725
211
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
|
show 1 more comment
I am purchasing a house, and apparently the seller owes more on it than what he listed it for. His realtor is now asking me if I can come up with 4000 dollars to be able to close. Is this legal? If I don't come up with this money (that is technically not my responsibility) will the deal really fall through?
house
edited 1 hour ago
Tas
1735
asked 4 hours ago
user83725user83725
211
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
1
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
4 hours ago
In your country of interest, do mortgages remain with the land?
– Lawrence
1 hour ago
2
Do not discount the possibility you're being lied to.
– corsiKa
1 hour ago
2
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
1 hour ago
1
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
1 hour ago
|
show 1 more comment
I am purchasing a house, and apparently the seller owes more on it than what he listed it for. His realtor is now asking me if I can come up with 4000 dollars to be able to close. Is this legal? If I don't come up with this money (that is technically not my responsibility) will the deal really fall through?
house
edited 1 hour ago
Tas
1735
asked 4 hours ago
user83725user83725
211
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
I am purchasing a house, and apparently the seller owes more on it than what he listed it for. His realtor is now asking me if I can come up with 4000 dollars to be able to close. Is this legal? If I don't come up with this money (that is technically not my responsibility) will the deal really fall through?
house
house
edited 1 hour ago
Tas
1735
asked 4 hours ago
user83725user83725
211
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 1 hour ago
Tas
1735
asked 4 hours ago
user83725user83725
211
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 1 hour ago
Tas
1735
edited 1 hour ago
Tas
1735
edited 1 hour ago
Tas
1735
1735
asked 4 hours ago
user83725user83725
211
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 4 hours ago
user83725user83725
211
asked 4 hours ago
user83725user83725
211
211
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
1
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
4 hours ago
In your country of interest, do mortgages remain with the land?
– Lawrence
1 hour ago
2
Do not discount the possibility you're being lied to.
– corsiKa
1 hour ago
2
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
1 hour ago
1
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
1 hour ago
|
show 1 more comment
1
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
4 hours ago
In your country of interest, do mortgages remain with the land?
– Lawrence
1 hour ago
2
Do not discount the possibility you're being lied to.
– corsiKa
1 hour ago
2
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
1 hour ago
1
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
1 hour ago
1
1
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
4 hours ago
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
4 hours ago
In your country of interest, do mortgages remain with the land?
– Lawrence
1 hour ago
In your country of interest, do mortgages remain with the land?
– Lawrence
1 hour ago
2
2
Do not discount the possibility you're being lied to.
– corsiKa
1 hour ago
Do not discount the possibility you're being lied to.
– corsiKa
1 hour ago
2
2
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
1 hour ago
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
1 hour ago
1
1
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
1 hour ago
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
1 hour ago
|
show 1 more comment
1 Answer
1
active
oldest
votes
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 4 hours ago
AganjuAganju
21.9k43578
1
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
3 hours ago
1
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 hours ago
2
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
1 hour ago
add a comment |
protected by JoeTaxpayer♦ 1 hour ago
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 4 hours ago
AganjuAganju
21.9k43578
1
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
3 hours ago
1
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 hours ago
2
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
1 hour ago
add a comment |
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 4 hours ago
AganjuAganju
21.9k43578
1
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
3 hours ago
1
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 hours ago
2
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
1 hour ago
add a comment |
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 4 hours ago
AganjuAganju
21.9k43578
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 4 hours ago
AganjuAganju
21.9k43578
answered 4 hours ago
AganjuAganju
21.9k43578
answered 4 hours ago
AganjuAganju
21.9k43578
answered 4 hours ago
AganjuAganju
21.9k43578
21.9k43578
1
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
3 hours ago
1
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 hours ago
2
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
1 hour ago
add a comment |
1
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
3 hours ago
1
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 hours ago
2
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
1 hour ago
1
1
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
3 hours ago
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
3 hours ago
1
1
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 hours ago
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 hours ago
2
2
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
1 hour ago
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
1 hour ago
add a comment |
protected by JoeTaxpayer♦ 1 hour ago
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
1
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
4 hours ago
In your country of interest, do mortgages remain with the land?
– Lawrence
1 hour ago
2
Do not discount the possibility you're being lied to.
– corsiKa
1 hour ago
2
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
1 hour ago
1
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
1 hour ago