Usually both the listing agent and the buyers agent will split the difference in the cost if the bank hasnt already taken care of the issue. The buyer shoud not have to pull money out of their pocket to pay for the banks mistake. In our office, issues like this have arisen and we have the agents split the difference on their commission to compensate for the cost. If you have nay other questions or comments please conact me at:
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You really believe that the buyer should not have to pull money out of their pocket but the agents should?! Glad I don't work for your agency. Speaking as an independent contractor, this would have to be a pretty expensive house for me to contribute between 1000 and 2500 to make the sale go.

I do not think you can pay the sellers debt, but why do you not just raise the sale price. You can pay the difference on FHA between the appraised value and the sale price. That would give more money back to the seller and ultimately pay the lender.
talk to your realtor about it.
Connie Bramble
714-337-8718

Dear Hopeful:

I checked with the FHA and from what they tell me, it appears there IS a prohibition on a buyer paying for the discharge of seller debt. From your previous post, it wasn't clear your loan was an FHA loan.

I am not a lender, so double-check with your loan officer who can present the details of your case to FHA and get a response.

Your realtor should be checking with your lender before they make up any changes. It is a lender question. You can also call your lender to find out first hand, what FHA will allow.

Diana 909-945-5763

Your question is unclear. Are you paying cash or financing with FHA? Where are you in the closing time line? Are you in escrow and closing soon...like next week? Do you have an accepted offer?

Based on your question/comments ("before closing on my home"), I assumed your escrow time line is coming to the end and your closing date is coming up...

If yes, wouldn't your FHA lender (the loan officer that's getting the loan approve for you) would have the answer to your question?

The FHA Lender is the "best" source of information for your question (instead of escrow's effort to search for the answer.)

If no, search here for an FHA lender and ask your question directly...http://www.hud.gov/ll/code/llslcrit.cfm

Usually both the listing agent and the buyers agent will split the difference in the cost if the bank hasnt already taken care of the issue. The buyer shoud not have to pull money out of their pocket to pay for the banks mistake. In our office, issues like this have arisen and we have the agents split the difference on their commission to compensate for the cost. If you have nay other questions or comments please conact me at:

John & Sarena Villaescusa
Cell- 562-818-2671
Email- Johnv@kw.com
Website- http://www.VGroupHomes.com