Thanks everyone.......we did try to get the checks paid directly to the contractor but our lender which is WF still said no. So, just a warning out there, they are being ultra conservative. So, the seller (a bank) is willing to reduce the price of the home by $5K or we found another lender that would escrow the funds...we are weighing our options on what to do. Thanks again for the help, this website is wonderful!!

Sun May 11 2008, 10:50

What I have been able to do in the past is get specific bids from contractors for specific jobs, submit those bids to the loan officer & seller, and then simply have the title company at closing write checks to those contractors and charge the Seller.

Haven't had a problem with it so far.

Sun May 11 2008, 07:18

Unfortunately, this has to do with your lender, not the bank that is selling the home nor their agent.. Yes you successfully negotiated this into the contract, but the underwriter of your loan has rules to follow and is most likely refusing the $5000 because of these rules. I am surprised they will not let you escrow the money.

I had a buyer negotiate a fridge onto the contract, paying $1000 extra for the appliance. The lender refused to approve the loan with the fridge on the contract, so we had to take it off and the buyer had to pay for it outside of closing. This goes to show you we have no idea what a lender is going to like/dislike when it comes to approving a loan.

Rebates are allowed in Minnesota. One thing I can think of is to have the $5000 go to the listing agent as commission, then have the agent rebate you the funds after closing. This will have to be disclosed to the lender, so you might run this by them and see if they would allow it. Good luck!

Sat May 10 2008, 06:19

The $5K allowance is in the contract it's my lender that is saying they won't allow us to get a check in the end. We also asked could we get a check to Home Depot so it's not to us and they said no. $7K in closing costs and $5K in carpet allowance is ALL in the contract. A total of $12K, but I only need $7K at closing......

Fri May 9 2008, 20:18

Hi Lashae ..

Really sorry you are having problems , we are investors in the south florida area and we never close any deal without having our attorney review every single piece of paper on the table specially with lost corners .. I think you already too deep in the problem for negotiations but you can always take more pictures of bad areas on the house and of course follow up with a phone call to the owner (bank) .. it is not only carpet cleaning .. it is also the piece of paint falling .. the rotten wood ... the dirty air conditioner unit ... the clogged bathroom .. I dont know , whatever you find to point at then BEFORE or DURING the negotiations ...or maybe now .. you know the details . At the end it is very difficult to negotiate after they know where you coming from and you have exposed yourself , but still you can make more phone calls , talk to more ppl at the bank , show more details , make more noise , remember when dealing with these type of sellers everything is bureaucracy until the documents find the right person , you need to find that person ... another point .. maybe you put some evasion clause (subject to ) on the contract .. something that allows you to threat to cancel the deal .. remember it is all psychological ... you can even go to the closing table and tell em right there you are not closing until an agreement is reached... , trust me on this one ... that will put some ppl to run ( at least here in Miami ) .. there are not bad moves at this point , whatever u can think of that may be of help .. and of course next time use one agent to represent you alone .. at the end if u cannot take the allowance money try to get it some other way .. I think this will bring some experience to you for next time .. which is always good at the end for you .

Wishing you the very best .. and always good luck !!

Joe

Fri May 9 2008, 20:12

Hi, sorry for your hassle..if I may, your story is one of the best examples of why a Buyer needs representation in a transaction. The seller subagent should assist you in getting the credit in some way, since the lender may not allow a cash credit at closing. At any rate, your story is a great lesson for all buyers of real property to make sure they have entered into an agency agreement before shopping for any property, be it owned by an individual or a bank (foreclosure). In some states it's automatic, in others you have to designate an agent as your 'buyer agent'. Hang in, there may be a way to still get your carpet credit.. good luck.

Fri May 9 2008, 20:08

NOT AT ALL!!!!
I am saying to have someone local to review the transaction as you feel you were decieved. The people I suggested SHOULD be unbiased and give you the BEST advise given your situation. You have already asked the bank and their agent about the credit. I encourage buyers and sellers to use separate attorneys for their closing representation. I also suggest next time to use an agent to represent you in any Real Estate business you do in the future. They have the expertise to negotiate the best deal for you. In most areas the buyers agent is paid through part of the fee offered by the seller's agent and seller.

Fri May 9 2008, 19:04

We used the listing agent as our agent. So, are you saying that this is illegal for them to advertise and then not deliver?

Fri May 9 2008, 18:44

Do you have an agent or did you use the Bank's representation? You could go to your agent and their BROKER to review the contract and listing details. If you are still having a problem, try your REAL ESTATE attorney or the local BOARD of REALTORS office!

Fri May 9 2008, 18:22

The seller's are a bank, they will not do anything to help repair the home before closing.

Fri May 9 2008, 17:45

Have you spoken to your agent about the sellers actually having the carpets cleaned?

Fri May 9 2008, 17:38