Nutshell:
-house was on the way to foreclosure so was put up for sale
-agent was hired, found buyer who offered full price, no closing costs, no repairs
-closing set for 12/10, then moved up to 11/26, then delayed again
-now closing is back to 12/10
-it just so happens that the agent's contract expires midnight 12/10
-today buyer asks for seller to pay $2,500 closing costs

My thoughts:
-buyer's pre-approval was bogus and they can't get the financing they need, or
-appraisal came in too low and new lender wants more money down (seller has not been told what the house appraised for)

My suggestions (totally unprofessional):
-only pay closing costs if selling price is increased the same amount so as not to decrease seller's proceeds
-find out what the house actaully appraised for
-if the seller doesn't want to find another buyer, at least reject the first request for $2,500 and start haggling (hopefully the true reason for the late request would come out)
-tell the buyer no and keep their earnest money, only problem here is that house was taken off the market when curent offer was accepted going on 60 days ago

Seller is suspicious now because someone is buying the house for a single family member with kids and thinks the buyer may be planning on becoming a Section 8 landlord. If that turns out to be true, I would definitely only pay closing costs if the buyer paid a higher sales price.

Bottomline, the seller needs to be ready to walk away from the deal if it means she has to come to closing with cash, but I think she's feeling kind of desperate. She's already sold or shipped all household goods and is on disability.

What say you?

This sounds like a set up ATP. And the homeowner doesn't want to rent to recoup some of the money. Is there a pre-final (or whatever they are called) signed contract stating the basic initial terms? And is this agent working for both the buyer and the seller?? That is never a good thing IMO. This sounds really bad.

Let me think about this ...

My first thought is if the house is in foreclosure, the seller can do nothing but lose if the buyer rejects the $2,500 bump in price.

What does the buyers plans for the house have to do with the owners plans?

Hey guys, thanks for your responses. I have received more information. The seller's agent finally revealed (after a lot of hemm and haw about what she didn't know) that since it is within 10 days of closing the buyer can't back out. The speculation is that the buyer has somehow messed up their credit between the time of their pre-approval and now. You know how once you're approved they tell you not to buy anything . . . well they think that the buyer probably went on a spree since the house is being purchased for their kid and grandkids.

Kweli: the buyer's plans for the home are relevant to the seller because it alludes to deception from the very beginning. Why make a full price/no closing costs/no repairs offer in the first place if your situation was even the least bit tenuous. By making such an offer, I believe the buyer was assured that the seller would take the house off the market and proceed with her transition. So at the last minute when a change in terms is sprung, the seller will feel desperate and agree to anything. (Edit: Also, folks who own properties and rent them out under Section 8 get money from HUD.) I don't know if the current lender has begun official foreclosure proceedings or not, I just know that when the house was put up for sale the owner was two months behind. "Victim"* of an ARM loan.

Whole thing sounds fishy to me. It wouldn't surprise me if the the buyer's agent and the seller's agent are in cahoots.

The seller has rejected the request for the closing costs. I need to call her today and find out what the next step is. I'm unclear on what the outcome will be if the buyer is allowed to back out but no longer has adequate financing. I'd assume they have to come up with the $2,500 on their own, maybe take out a piggyback???????? Does anyone still do piggybacks?

BTW, this is taking place in Louisiana. I know nothing about escrow rules in that state or her parish.


*I put victim in quotes because she should have known better. But . . . that's another thread.

Wooo Hoooo!

The closings has been completed. SHE DID NOT PAY THE $2,500.

I don't want to sound negative, but I love it when shady people are defeated.