Home Buying in Los Angeles>Question Details

Junlicup, Home Buyer in Elk Grove, CA

if the seller offered to pay the closing cost as part of the deal for you to buy the house.it seems like a good deal.

Asked by Junlicup, Elk Grove, CA Tue Oct 9, 2012

but when signing the final loan document for closing the loan it showed no reflection that the seller paid any of the above.
instead it added to the original/final loan amount of the house as a settlement charges listed to be paid by the borrower. Are they trying to fool us..?

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13
Jeffrey Sandorf’s answer
Review your purchase agreement with your agent asap to ensure its in writing and obtain an estimate of closing costs from escrow. This will reflect all debits and credits - this proforma will list all of the normal buyer closing costs as a debit to you but will also list the agreed to seller credit on the credit side of the ledger. You likely would have signed an escrow amendment at some point to reflect the credit.
1 vote Thank Flag Link Wed Oct 10, 2012
Are you getting an FHA loan? If so, there is an up front mortgage insurance premium (UFMIP) financed on top of the loan that is 1.75% of the original loan.

Your real estate agent and loan agent should have structured this seller's credit in a way that you should have taken advantage of the whole credit. Otherwise, if it is not specified, some of the credit will be returned to the seller at closing.
0 votes Thank Flag Link Wed Oct 10, 2012
What cost are they paying concurrent closings or recurrent closings costs there is a difference I dont think they will paying for any inspection or appraisser, up to how much closing cost ? review with your agent ,check the mls comments ,reviewed with escrow . Happy closing!
0 votes Thank Flag Link Wed Oct 10, 2012
What was written in the purchase contract? Was the offer to pay your closing costs an oral one only which the Seller can now deny?
Typically at closing, the original Loan of the Seller gets paid out of the proceeds of the Sale, but I am not sure exactly what is going on based on what you wrote.
Are you working with an Agent? Are you working with Escrow? Can't they explain to you what is happening?
0 votes Thank Flag Link Wed Oct 10, 2012
You should contact your Realtor and ask him to request buyers closing statement estimate from escrow. If you will not see any credit from seller for your closing costs that was in the contract, then your agent should poin that out to the escrow officer to adjust Buyers closing figures according to your contract.

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0 votes Thank Flag Link Wed Oct 10, 2012
You will be given a credit for a lump dollar amount. You are charged for closing costs then given a credit from buyer.
Your loan professional should be explaining this to you.
Go iver your contract and closing statement with them
0 votes Thank Flag Link Wed Oct 10, 2012
You will be given a credit for a lump dollar amount. You are charged for closing costs then given a credit from buyer.
Your loan professional should be explaining this to you.
Go iver your contract and closing statement with them
0 votes Thank Flag Link Wed Oct 10, 2012
Escrow won't close until the title company has matching instructions from buyer and seller. Also, if the sellers agreed to pay closing costs that is normally addressed via an addendum during the escrow period so it is clear to everyone what is being agreed to. If that didn't happen then you need to speak to your agent/broker and find out why
0 votes Thank Flag Link Wed Oct 10, 2012
Escrow's job is to make sure both sides perform the contract. Find the portion of the contract showing that Seller is paying closing costs and compare it to the Estimated closing statement. If they don't match it is escrow's responsibility. If you can't find the contract page then it is your Realtor's responsibility.
0 votes Thank Flag Link Wed Oct 10, 2012
Did you close escrow? If its not too late, bring up the seller concessions and anything else that is questionable. Have your agent go over the details and call escrow and sellers agent.

Good luck.
0 votes Thank Flag Link Wed Oct 10, 2012
It seems that the you are paying for the closing costs as a seller's concession, wherein the closing costs are added to the purchase price. And technically, you are paying for it.

Are you being represented by a realtor? This agreement should have been in the contract as an addendum or as part of the main contract.

Unless, it is in writing, the verbal promise is not enforceable. Refer to the "statute of frauds."

Check with your realtor or lawyer before the closing and see if there is something else you can do to enforce this.

Good Luck
0 votes Thank Flag Link Wed Oct 10, 2012
If the seller agreed to pay your closing costs upfront then this agreement should be part of your purchase agreement. Your purchase agreement would have wording like "Seller agrees to pay buyer's closing costs at the close of escrow" or something similar.

If the agreement was made after, i.e. as a response to a request for repairs then it would be on an addendum.

Review your contract with your agent. Ask where s/he specifically added this verbiage to your contract. If it has not been done and the seller is truly agreeing to credit your closing costs ask the escrow company to amend the escrow instructions to reflect the credit.
0 votes Thank Flag Link Wed Oct 10, 2012
Talk to your agent and read your contract. If the contract stipulates that the seller will be responsible for buyer's non-recurring closing costs then you shouldn't be having your closing costs listed as a debit to the buyer on the escrow breakdown. The question is was this included in your purchase contract or not? My guess is that it wasn't or someone has overlooked it. If there is an error then your escrow officer can help you correct it.
0 votes Thank Flag Link Wed Oct 10, 2012
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