Home Buying in 28403>Question Details

Lkn1224, Home Buyer in Wilmington, NC

I'm purchasing a short sale from a seller receiving an incentive from her bank. Can I ask for a portion of that incentive after inspection?

Asked by Lkn1224, Wilmington, NC Sat Jan 21, 2012

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Thats a side agreement, and think it is strictly controlled by the new HUD-1 form. That looks like seller assistance to the buyer and if it is allowed, would have to be on the HUD. If you are talking about keys for cash program, I don't think you can get anything. That money is to help the seller leave the home in good condition and provide transition money out of the place.
1 vote Thank Flag Link Sat Jan 21, 2012
If, after your inspection, you have found that substantial repairs are needed, you can attempt to negotiate those repairs with the bank. They won't always go for it but if it's significant enough that you would terminate the contract, the bank may be willing to do something for you. Discuss these options with your realtor.
0 votes Thank Flag Link Sat Jan 21, 2012
The incentive the bank gives the seller is part of a contract or short sale agreement between the bank and the seller. If the bank if offering an incentive, it is typically based on a financial need. It is highly unlikely that the seller's bank will allow that money to go anywhere but to the seller. It will also be recorded on the HUD-1 statement as monies to the seller at closing.
0 votes Thank Flag Link Sat Jan 21, 2012
You should be getting a great deal. Let the sellers atleast have a few bucks to start their lives over here. Short sales are sold AS-IS. As others mentioned below, don't rock the boat.
0 votes Thank Flag Link Sat Jan 21, 2012
There's a type of short sale called a HAFA short sale where the banks are offering cash to the sellers to help with relocation costs. The sellers have to prove a true hardship though. Also, some sellers are being given incentives from the bank to keep up the property throughout the short sale process. This is much less expensive for them than foreclosing on the home and risking angry sellers trashing the home. As someone else said, I wouldn't rock the boat if your short sale is making it's way through the process successfully.
0 votes Thank Flag Link Sat Jan 21, 2012
If you have already submitted an offer then your agent should be able to gather those details for you as to what the incentive includes, everything is transparent in a short sale. However if it is an incentive through a HAFA program or something of that sort then no you would not be entitled to it as that is designed to help the seller with their next step. Best of luck on your purchase and let me know if I can help.
0 votes Thank Flag Link Sat Jan 21, 2012
I am thinking that you are referring to Closing Costs;
No matter; it sounds like the "incentive" is contained in the Escrow, so,
NO, you cannot have anything in the Escrow until the Escrow closes.
Knowing how fragile a Short Sale is, you shouldn't do anything to jeopardize it!

Good luck and may God bless
0 votes Thank Flag Link Sat Jan 21, 2012
If the seller is experiencing true hardship, why the need for a portion....
0 votes Thank Flag Link Sat Jan 21, 2012
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