No. of Recommendations: 6
The 6% may have come from the seller, but not in the form of cash in hand. It was to be applied toward closing costs. It could not have been cash back to the borrower because that would have been an unallowable incentive to purchase.

Cath, you have theory but I was there at closing. She walked with a bit of cash, or rather a check was cut for her. The County was OK with that. Perhaps they held the loan themselves, rather than sell it off. This particular county loan was 100% financing 30 year FRM at 5%, allowing 6% "cash back" via seller's funds, whether that exceeded costs or not.

Believe me, this client is impossible to forget, even if I didn't still have my copy of the file in my file drawer. CYA is the name of the game for Realtors in this part of the country. Sellers remorse tends to result in lawsuits. This is one client I strongly urged to continue renting rather than buy, but since she insisted on buying, I figured at least if I represented her she would be better off.

I know it is a tough concept, but there are some things that you don't know.

IP,
done discussing it with you
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