Home Buying in 27409>Question Details

Elizabeth, Home Buyer in 27409

I need information about a seller paying apartment lease termination fees; the seller has agreed, but lender

Asked by Elizabeth, 27409 Sat Jan 24, 2009

has now said the seller cannot pay the termination fees. The lease ends july 31. We have been pre-approved for an FHA home loan, and are ready to sign the contract for the house. Does anyone have any advice or ideas?

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The answer is the same. Since you are using an FHA loan I also assume you are a first time homebuyer. You need to speak to your buyers agent. I hope you are not trying to use the seller's agent. As a first time home buyer with an FHA loan you must have your own agent. Your agent should have some attorney contacts that can look at your lease and help you through this. Seller's can offer you the moon but, it is not up to them what they can actually do and deliver on. You lease is the key and it needs to be previewed by an attorney. Then you can get an educated view of where you stand.

If you can find someone to rent your apartment then the management may let you out of your lease.

Hope this helps,
0 votes Thank Flag Link Sun Jan 25, 2009
FHA will not allow the seller to give an "inducement" to buy, or to pay fees that are no typically associated with your closing costs. I would review the lease agreement you signed and maybe even have an attorney review it. There may be loop hole that allows for early termination. Often, leases will have transfer/relocation clauses that state if your job requires you to move "X" miles, you can terminate the lease early with notice of "Y" days. (This may not be applicable to you) There may also be limitations on how much they can charge based on getting a new tenant in place. How desirable is the place you are leasing? How long will it take to get a new tenant? What condition are you leaving the home in comparison to the way it was when you took possession? I believe that you cannot be charged for months that others are living there, but I could be wrong. This is why you really should consult an attorney. Without reviewing your lease, it is hard to say what your real options are. If you don't want to go to an attorney you may first try to negotiate with the landlord/management for a settlement. Most landlords/management realize that your lease is a temporary situation for you and are happy to see you advance your goals. At the same time, they have to perceive the lease as business, and from my perspective, real estate is always negotiable. Good Luck!!
0 votes Thank Flag Link Sat Jan 24, 2009
I would ask your lender what fees the seller could pay at settlement to that equal the lease termination fee. Is the seller paying any closing costs? You will need to find out how much closing costs the lender will allow and if they can pay any closing costs that equal the termination fee the seller should have no problem offsetting it in another way.

Let me know if you have any other questions.... Coni Otto
0 votes Thank Flag Link Sat Jan 24, 2009
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