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08-16-2011, 06:33 PM #1
Renter
- Join Date
- Aug 2011
- Posts
- 1
Does it have to go on HUD1 ?
I'm a seller in indiana.
I've signed an addendum to purchase agreement saying I will pay $3000 carpet allowance to Buyers.
Buyers lender said "no way" thus the addendum was not turned in to lender and was not on the HUD1 at closing.
A week later and now receiving calls from Buyers agent and Buyers broker saying, "why am I refusing to pay this when the buyer and I have a signed agreement stating that I would? and do I intend to pay?"
I was fine to pay it when It was going on the HUD1 and everything seemed on the "up and up" But cautious too after the fact because it smells of fraud, under the table type stuff.
What are my obligations? Does it have to go on HUD1 ?
Thank You
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08-17-2011, 05:36 AM #2
Moderator
- Join Date
- Sep 2007
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- Outer Banks
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- 1,281
The money should be on the contract and in the hud as closing costs to the buyer. Lenders are ok with closing costs. Lenders do not want to lend an a property needing repairs which is why the agents hid the carpet addendum from the lender. This way the buyer could have saved their cash for the carpet.
You are correct. If you pay anything to the buyer outside of closing it can be consider loan fraud. Plus, paying it outside of closing means you might not be able to write off the payment against the cost of selling the house.Your Outer Banks real estate agent. Learn how to buy Outer Banks foreclosures.
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