Offered money to buy a house, seller is asking for more to cover gap between their listing and mortgage owed
I am purchasing a house, and apparently the seller owes more on it than what he listed it for. His realtor is now asking me if I can come up with 4000 dollars to be able to close. Is this legal? If I don't come up with this money (that is technically not my responsibility) will the deal really fall through?
house
edited 2 days ago
Tas
1735
asked 2 days ago
user83725user83725
4112
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user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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I am purchasing a house, and apparently the seller owes more on it than what he listed it for. His realtor is now asking me if I can come up with 4000 dollars to be able to close. Is this legal? If I don't come up with this money (that is technically not my responsibility) will the deal really fall through?
house
edited 2 days ago
Tas
1735
asked 2 days ago
user83725user83725
4112
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
4
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
2 days ago
11
Do not discount the possibility you're being lied to.
– corsiKa
2 days ago
7
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
2 days ago
7
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
2 days ago
3
Perhaps his realtor could pitch in?
– Chris W. Rea
2 days ago
|
show 3 more comments
I am purchasing a house, and apparently the seller owes more on it than what he listed it for. His realtor is now asking me if I can come up with 4000 dollars to be able to close. Is this legal? If I don't come up with this money (that is technically not my responsibility) will the deal really fall through?
house
edited 2 days ago
Tas
1735
asked 2 days ago
user83725user83725
4112
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
I am purchasing a house, and apparently the seller owes more on it than what he listed it for. His realtor is now asking me if I can come up with 4000 dollars to be able to close. Is this legal? If I don't come up with this money (that is technically not my responsibility) will the deal really fall through?
house
house
edited 2 days ago
Tas
1735
asked 2 days ago
user83725user83725
4112
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 2 days ago
Tas
1735
asked 2 days ago
user83725user83725
4112
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 2 days ago
Tas
1735
edited 2 days ago
Tas
1735
edited 2 days ago
Tas
1735
1735
asked 2 days ago
user83725user83725
4112
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 2 days ago
user83725user83725
4112
asked 2 days ago
user83725user83725
4112
4112
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
user83725 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
4
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
2 days ago
11
Do not discount the possibility you're being lied to.
– corsiKa
2 days ago
7
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
2 days ago
7
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
2 days ago
3
Perhaps his realtor could pitch in?
– Chris W. Rea
2 days ago
|
show 3 more comments
4
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
2 days ago
11
Do not discount the possibility you're being lied to.
– corsiKa
2 days ago
7
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
2 days ago
7
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
2 days ago
3
Perhaps his realtor could pitch in?
– Chris W. Rea
2 days ago
4
4
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
2 days ago
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
2 days ago
11
11
Do not discount the possibility you're being lied to.
– corsiKa
2 days ago
Do not discount the possibility you're being lied to.
– corsiKa
2 days ago
7
7
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
2 days ago
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
2 days ago
7
7
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
2 days ago
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
2 days ago
3
3
Perhaps his realtor could pitch in?
– Chris W. Rea
2 days ago
Perhaps his realtor could pitch in?
– Chris W. Rea
2 days ago
|
show 3 more comments
2 Answers
2
active
oldest
votes
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 2 days ago
AganjuAganju
22.1k43578
3
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
2 days ago
4
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 days ago
3
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
2 days ago
1
@chepner: But (if a binding agreement hasn't been signed) the seller is under no obligation (AFAIK, but I'm not a lawyer) to actually sell for the listed price. Bidding wars aren't unknown in hot markets. Indeed, I had this happen when I bought my current house: listed for $X, I made an offer for that, the seller came back wanting another $5K. (Which I agreed to, and still think I got a bargain :-))
– jamesqf
2 days ago
add a comment |
it is legal frm them to ask. As this point you have a right to walk away and sue them for their time spend because of false advertising (see, they want MORE than their listing - the fees are THEIR problem, so essentially they lied with the listing). There is a fine line between negotiations and fraud and if you make someone else expense energy and time and money because of giving false information you are liable.
Generally this is a liar style negotiation. They say "we list for X" but then they keep up adding other things to the price to ramp the price higher. How high their mortgage is does not matter. They could have waaaay overpaid on the house - so what, their problem. Obviously the ank will not release the house, so they need to pony up the money now. Well, there are hopefully other houses around, or you basically decide to pay a higher price. 4000USD does not sound like a big change (depending on the house) so just ponying up the money may be worth it -but it is YOUR decision, not theirs. You have no legal obligation to pay more.
answered yesterday
TomTomTomTom
2,79221215
1
Your realtor should be able to answer this for you. You should have either a lawyer or a realtor for these questions. I think all the answers here are somewhat correct, but only professional with access to your paperwork is qualified to give you an opinion.
– Gary
yesterday
add a comment |
protected by JoeTaxpayer♦ 2 days ago
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 2 days ago
AganjuAganju
22.1k43578
3
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
2 days ago
4
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 days ago
3
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
2 days ago
1
@chepner: But (if a binding agreement hasn't been signed) the seller is under no obligation (AFAIK, but I'm not a lawyer) to actually sell for the listed price. Bidding wars aren't unknown in hot markets. Indeed, I had this happen when I bought my current house: listed for $X, I made an offer for that, the seller came back wanting another $5K. (Which I agreed to, and still think I got a bargain :-))
– jamesqf
2 days ago
add a comment |
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 2 days ago
AganjuAganju
22.1k43578
3
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
2 days ago
4
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 days ago
3
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
2 days ago
1
@chepner: But (if a binding agreement hasn't been signed) the seller is under no obligation (AFAIK, but I'm not a lawyer) to actually sell for the listed price. Bidding wars aren't unknown in hot markets. Indeed, I had this happen when I bought my current house: listed for $X, I made an offer for that, the seller came back wanting another $5K. (Which I agreed to, and still think I got a bargain :-))
– jamesqf
2 days ago
add a comment |
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 2 days ago
AganjuAganju
22.1k43578
It is certainly legal to ask you, but you are of course not required to 'donate' another 4000 - that is your choice.
If the deal falls through because of these 4000, it is the seller's fault, and you could sue him for your damages - whatever you invested/paid to get into this closing. Probably not much, but I wouldn't know. Also, chances are that if he is underwater with his home mortgage, he doesn't have the money to pay you even if you win in court, so you'd end up getting only a worthless sheet of paper.
The deal should not fall through for 4000, though. Normally his bank will accept the deal, and he will end up owing those 4000 to his bank still. The amount is probably small compared to the complete mortgage, and the bank would prefer to get the big chunk now and run after the 4000, instead of potentially getting less or nothing later.
So basically, the seller is just trying to sucker you into covering his 4000-problem.
answered 2 days ago
AganjuAganju
22.1k43578
answered 2 days ago
AganjuAganju
22.1k43578
answered 2 days ago
AganjuAganju
22.1k43578
answered 2 days ago
AganjuAganju
22.1k43578
22.1k43578
3
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
2 days ago
4
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 days ago
3
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
2 days ago
1
@chepner: But (if a binding agreement hasn't been signed) the seller is under no obligation (AFAIK, but I'm not a lawyer) to actually sell for the listed price. Bidding wars aren't unknown in hot markets. Indeed, I had this happen when I bought my current house: listed for $X, I made an offer for that, the seller came back wanting another $5K. (Which I agreed to, and still think I got a bargain :-))
– jamesqf
2 days ago
add a comment |
3
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
2 days ago
4
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 days ago
3
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
2 days ago
1
@chepner: But (if a binding agreement hasn't been signed) the seller is under no obligation (AFAIK, but I'm not a lawyer) to actually sell for the listed price. Bidding wars aren't unknown in hot markets. Indeed, I had this happen when I bought my current house: listed for $X, I made an offer for that, the seller came back wanting another $5K. (Which I agreed to, and still think I got a bargain :-))
– jamesqf
2 days ago
3
3
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
2 days ago
This does assume that the agreement to purchase has reached the binding stage.
– DJClayworth
2 days ago
4
4
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 days ago
Even if it hasn't, the OP is under no obligation to raise his offer to cover the seller's unexpected expense. The amount the seller still owes does not determine the market value of the house.
– chepner
2 days ago
3
3
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
2 days ago
If I was a bank and I could sell a house with an underwater mortgage and only lose 4k on the remaining balance, I'd probably jump at the deal. Chances are the longer it takes to sell, the more money I'll lose on it.
– corsiKa
2 days ago
1
1
@chepner: But (if a binding agreement hasn't been signed) the seller is under no obligation (AFAIK, but I'm not a lawyer) to actually sell for the listed price. Bidding wars aren't unknown in hot markets. Indeed, I had this happen when I bought my current house: listed for $X, I made an offer for that, the seller came back wanting another $5K. (Which I agreed to, and still think I got a bargain :-))
– jamesqf
2 days ago
@chepner: But (if a binding agreement hasn't been signed) the seller is under no obligation (AFAIK, but I'm not a lawyer) to actually sell for the listed price. Bidding wars aren't unknown in hot markets. Indeed, I had this happen when I bought my current house: listed for $X, I made an offer for that, the seller came back wanting another $5K. (Which I agreed to, and still think I got a bargain :-))
– jamesqf
2 days ago
add a comment |
it is legal frm them to ask. As this point you have a right to walk away and sue them for their time spend because of false advertising (see, they want MORE than their listing - the fees are THEIR problem, so essentially they lied with the listing). There is a fine line between negotiations and fraud and if you make someone else expense energy and time and money because of giving false information you are liable.
Generally this is a liar style negotiation. They say "we list for X" but then they keep up adding other things to the price to ramp the price higher. How high their mortgage is does not matter. They could have waaaay overpaid on the house - so what, their problem. Obviously the ank will not release the house, so they need to pony up the money now. Well, there are hopefully other houses around, or you basically decide to pay a higher price. 4000USD does not sound like a big change (depending on the house) so just ponying up the money may be worth it -but it is YOUR decision, not theirs. You have no legal obligation to pay more.
answered yesterday
TomTomTomTom
2,79221215
1
Your realtor should be able to answer this for you. You should have either a lawyer or a realtor for these questions. I think all the answers here are somewhat correct, but only professional with access to your paperwork is qualified to give you an opinion.
– Gary
yesterday
add a comment |
it is legal frm them to ask. As this point you have a right to walk away and sue them for their time spend because of false advertising (see, they want MORE than their listing - the fees are THEIR problem, so essentially they lied with the listing). There is a fine line between negotiations and fraud and if you make someone else expense energy and time and money because of giving false information you are liable.
Generally this is a liar style negotiation. They say "we list for X" but then they keep up adding other things to the price to ramp the price higher. How high their mortgage is does not matter. They could have waaaay overpaid on the house - so what, their problem. Obviously the ank will not release the house, so they need to pony up the money now. Well, there are hopefully other houses around, or you basically decide to pay a higher price. 4000USD does not sound like a big change (depending on the house) so just ponying up the money may be worth it -but it is YOUR decision, not theirs. You have no legal obligation to pay more.
answered yesterday
TomTomTomTom
2,79221215
1
Your realtor should be able to answer this for you. You should have either a lawyer or a realtor for these questions. I think all the answers here are somewhat correct, but only professional with access to your paperwork is qualified to give you an opinion.
– Gary
yesterday
add a comment |
it is legal frm them to ask. As this point you have a right to walk away and sue them for their time spend because of false advertising (see, they want MORE than their listing - the fees are THEIR problem, so essentially they lied with the listing). There is a fine line between negotiations and fraud and if you make someone else expense energy and time and money because of giving false information you are liable.
Generally this is a liar style negotiation. They say "we list for X" but then they keep up adding other things to the price to ramp the price higher. How high their mortgage is does not matter. They could have waaaay overpaid on the house - so what, their problem. Obviously the ank will not release the house, so they need to pony up the money now. Well, there are hopefully other houses around, or you basically decide to pay a higher price. 4000USD does not sound like a big change (depending on the house) so just ponying up the money may be worth it -but it is YOUR decision, not theirs. You have no legal obligation to pay more.
answered yesterday
TomTomTomTom
2,79221215
it is legal frm them to ask. As this point you have a right to walk away and sue them for their time spend because of false advertising (see, they want MORE than their listing - the fees are THEIR problem, so essentially they lied with the listing). There is a fine line between negotiations and fraud and if you make someone else expense energy and time and money because of giving false information you are liable.
Generally this is a liar style negotiation. They say "we list for X" but then they keep up adding other things to the price to ramp the price higher. How high their mortgage is does not matter. They could have waaaay overpaid on the house - so what, their problem. Obviously the ank will not release the house, so they need to pony up the money now. Well, there are hopefully other houses around, or you basically decide to pay a higher price. 4000USD does not sound like a big change (depending on the house) so just ponying up the money may be worth it -but it is YOUR decision, not theirs. You have no legal obligation to pay more.
answered yesterday
TomTomTomTom
2,79221215
answered yesterday
TomTomTomTom
2,79221215
answered yesterday
TomTomTomTom
2,79221215
answered yesterday
TomTomTomTom
2,79221215
2,79221215
1
Your realtor should be able to answer this for you. You should have either a lawyer or a realtor for these questions. I think all the answers here are somewhat correct, but only professional with access to your paperwork is qualified to give you an opinion.
– Gary
yesterday
add a comment |
1
Your realtor should be able to answer this for you. You should have either a lawyer or a realtor for these questions. I think all the answers here are somewhat correct, but only professional with access to your paperwork is qualified to give you an opinion.
– Gary
yesterday
1
1
Your realtor should be able to answer this for you. You should have either a lawyer or a realtor for these questions. I think all the answers here are somewhat correct, but only professional with access to your paperwork is qualified to give you an opinion.
– Gary
yesterday
Your realtor should be able to answer this for you. You should have either a lawyer or a realtor for these questions. I think all the answers here are somewhat correct, but only professional with access to your paperwork is qualified to give you an opinion.
– Gary
yesterday
add a comment |
protected by JoeTaxpayer♦ 2 days ago
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
4
you could wait for the bank to repossess it and buy it at accurate market price at that point in time.
– CQM
2 days ago
11
Do not discount the possibility you're being lied to.
– corsiKa
2 days ago
7
So the seller has listed their house for say $360k, and you met their offer (as opposed to offering less, not that it should matter), and they accepted your offer, but are now asking for an extra $4k? Or are you still negotiating (they asked $360k, you offered $350k, and they're saying they'd really prefer $354k to cover expenses)?
– Tas
2 days ago
7
This depends entirely on what phase of the purchase you are in (and what country you're in). If they've accepted an offer from you then, in most advanced countries, you have a legally binding agreement at whatever terms you've both agreed to. If you've not yet had an offer accepted, then they can ask anything they want, or not sell the house at all.
– J...
2 days ago
3
Perhaps his realtor could pitch in?
– Chris W. Rea
2 days ago