OfflineFound a great deal and locked it up. Second buyer that looked at the property wanted it...He needed financing.... House was in Terrific condition. So I had the sellers sign the Discharge of Agreement to Purchase then wrote a contract between the two of them. Day of settlement the title company calls and says that the lender will not allow this to be on the HUD 1 I was fortunate that the seller had some money and was great to work with.... so he went out and got a certified check made out to me and they closed and all is good. If the buyer had this money I would have just gotten a deposit check from him in the beginning.... but he didnt. Any one else run in to this or have any advice for the next time??
Thanks
Darren
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How was it listed on the HUD1?
I have not run into that my self but i have heard of that yes.
" Not Having a goal is more feared than not reaching one"
Christa Niven
Hi Darren,
If your buyer is a retail buyer (having to get a loan from a traditional lender) you will run into this problem all the time. I have not heard of any way around it for now but I am sure something new will come up soon. In the meantime try to work with investor buyers who do not use traditional lenders.
Glad you got your deal done.
Thanks,
Shah
Im not sure how it was listed...... It was an FHA Loan..... The home was in terrific shape so I didnt hestitate....All turned out OK..... but Im sure not all will. I dont like turning buyers away simply because they do not have the cash. I didnt know if having the seller sign a promisory note was an option or not.