Asked by Wannabe Buyer, 55337 • Wed May 13, 2009
I am making an offer on a foreclosure, however the city it is in has a foreclosure purchase incentive program that involves down payment assistance. I would like to try and take advantage of it, but I am being advised not to. Here are the reasons I am getting:
1) From Agent: If you complicate your offer by including that program, the selling bank will just ignore your offer in favor of another. (This I totally buy)
2) From Lender: It would be very difficult to get your loan approved with the inclusion of this program (which is essentially an interest free forgivable loan). Why should it be so difficult if the city is going to subordinate and simply improve the CLTV for the lender?
2) From Agent: If you don't include it in your offer/PA you can't change it later... IE include that program or change lenders if the lender can't make the program work. If a commitment to a lender/financing isn't in the PA, and the sale is funded anyway, what does the seller care/ have recourse for?
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