This kind of request for extra money usually comes because the 2nd lien holder is demanding that they be paid an additional $3000 or they won't agree to release the property and issue an approval letter. The Seller does not or cannot reach in their pocket to pay the $3000 , so they go to the Buyer and ask for more. Alternatively, they let it go in to foreclosure.
I would get further clarification from the Seller's Agent about the facts of this case sicne yu got a different explaination. Your Buyer's agent, if experienced in Short Sales, should be familiar with this problem. It happens all the time when a 2nd lien or HOA lien is in place. You can also seek legal advice from a short sale real estate attorney.
So, if the 2nd lien holder wants an extra $3000 and you agree, have the seller's agent give you a new HUD-1 showing what is proposed (who gets paid what). If you agree, you would draw up an addendum to increase the price $3000. Your lender will still require the home appraise.
Given the limited number of houses on the market, and my assumption the house is now worth more than your offer in this rising market, you might be best to bit the bullet if you can afford it. Otherwise you would need to cancel the contract and get your earnest money back.
Central AZ Real Estate
Your Local Expert
You should not be talking to the seller directly. Have you Buyer's agent talk to the Seller's agent. It should be the seller's agent that that educates the seller. If not have your agent contact the Seller's Broker to get to the bottom of who said what to whom. If you need a lawyer recommendation, please email me. At a minimum, your agent should issue a 3 day cure notice. If your agent does not know what to do, go to his broker for help.
You can get legal advice for probably $300 and maybe a letter from your lawyer to the seller to set them straight. If it is the seller asking for money outside closing that is a clear breach of contract and you may be entitled to damages which might be enough to get the seller pointed back in the right direction.
If the seller heard stories that he will be paid to do a foreclosure, I would assume he got it wrong. He might have qualified for "moving expenses" to do a short sale, but not a foreclosure. Again, this is for his Selling agent or Selling Broker to straighten him out.
Just the mention of an attorney might make the sellers agent and or seller think twice regarding this proposed action.
How did you receive this information that the the seller wants an extra $3,000 in their pocket? Your agent or direct from the seller? I doubt the seller's agent contacted you directly.
All the best,
Some banks do offer money through different programs that would give the seller $3000 to move. I have a short sale client that is going to get $3000 to move and another $25,000 from their bank to do the short sale. But money from you to the seller is not allowed.
Ron & Brenda Cunningham
West USA Realty
** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley" **
It is not uncommon for a 2nd lien holder to ask for additional cash above what the 1st lien hold is offering the 2nd. Sometimes the 2nd will require it comes from the seller. In other cases the 2nd won't care where it comes from. If this is the case and you are getting a good deal, $3K is not much for a buyer contribution. Just make sure it is paid at closing and is on the settlement statement disclosing it to all parties involved.
Talk to your agent to get all the details on the $3K and make sure you are clear who is requiring or asking for it.
So when the FBI comes to talk to you, make sure the Buyer Broker and Seller's Broker are in the same room. That will she us taxpayers money because the FBI agents will not have to make as many trips.
So if it were I? I'd tell the Seller to stick it where the sun don't shine and make sure he understands you will place his "offer" on notice with the Seller's lender. Or the Attorney Generals office. His choice.
I think the Seller will come around to your way of thinking.
I would say if the buyer wants the house and if it has been 6 months the house has gone up by at least 20% do the math and if it works in the buyers favor pay the $3,000.