I don’t think the lenders will agree to this, which is why this is usually done outside of escrow and is considered fraud. I had a seller give me credit in the past on home purchase, but the lender’s guidelines limited it to something like 3% of the sales price.
There have been too many recent defaults, where the buyer overpaid and received cash back, only yo walk away from the loan. The lenders, DAs and assorted lawyers are on to this scheme, so I would avoid it. Even if you are trying to do it the right way.
IMHO … they are a must. Lets see, if you had to buy in this market, no matter how low you bid the price and get them to agree, would you be comfortable with the fact that values can drop below your price … so unless I am offered like 30% cash of original list price after I negotiate the purchase price down to 50% of asking, I’d not buy.
OK its like this, say some shack is listed at 1 million. First off, I’d negotiate the price to 1/2 mil. Then make them give me 300K cash at closing. So there … see how it works.
Its a must. The more over priced the McShitbox is, and the more of a Shit box it is, the more cash back I’d ask for.
As always its great and hence frowned upon by people and banks.
Cool.
Cow_tipping.
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