How do you squeeze out all of the agreed $ amount for seller paid buyer closing costs?

km9
Contributions:127

I was promised 3% to be paid buy seller for my closing costs as in my contract. Now I'm told that because of the closing month (February), there is no longer a 7 month tax impound and instead I have to pay upfront taxes through June. So supposedly I cannot include the 7 month impound in the 3% seller paid costs and will have to put up an additional $1100 at closing above the GFE because of this. The escrow person said that there was no other closing cost items that could be paid by seller. (Hope that didn't confuse too much.) So what can I do to recoup the lost $1100 that the seller agreed to pay? I mentioned to my agent about having the bank install an oven or something, but only as a last resort if the money can't be credited to me at closing.

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February 09 2011 - Santa Clarita

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Replies (6)

ConnieK_Oklahoma
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an important question might be the wording in the contract. Did they write seller to pay 3% of buyers closing costs, title and prepaids? it's important to put those extra words in there. things always seem to be a little different in California however, but that is a starting point for you. I'd follow up with the agent and their broker on this matter. There's also potential lender issues about what they can pay and not pay. that's why it's important to get the broker involved, they can help guide your agent and get to the bottom of it.

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February 09 2011

Mike Bjork, "MortgagePlannerMike"
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If the loan is Conventional, then you can only include the Non-recurring Closing Costs to be paid with the Seller Credit. If the loan is FHA, then you should be able to include the Impound/Escrow account from the Seller Credit. Does this shed some light on your question?

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February 09 2011

Dan, "the_country_hick"
Contributions:4695

One option would be to ask the seller to drop the price by that same $1,100/ After all, they net the same amount from the sale.

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February 09 2011

Sean Ogilvie, "California Mortgage"
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Contributions:173

Have you signed your loan documents at Title yet and do you know if you are receiving a credit from the lender?

If you are receiving a credit from the lender, depending on how much it is for, you may want to look at what your net cost would be if you choose a interest rate 1/8th lower that than your current.

Hope that helps.