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.

done discussing it with you
Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.