Huh. Our sales price dropped before closing.

[MrsAxilla]

Our seller agreed to pay all closing costs (about $6K). Our mortgage broker managed some "magic" so there aren't any closing costs, so our seller dropped the price $6K. Have you ever heard of this? What magic did the mortgage guy perform? Interesting....

[effisia]

I have no idea what kind of voodoo he used, but I want some! We're paying all of our closing (about 11k) and it would have been nice to have a little magic reduction. Congrats on that!

[circa1978]

Closing costs don't disappear. Make sure he didn't fold it into your loan. Personally, I'd rather pay that $6,000 upfront than finance it for 15-30 years. It's possible the bank is paying the costs and will then sell the loan to a larger bank, but I think that's more common with no cost refinances.

[MrsAxilla]

Jun 22, 2012 7:27:33 GMT -5 circa1978 said:

It's possible the bank is paying the costs and will then sell the loan to a larger bank, but I think that's more common with no cost refinances.

I think it's something like that. His email says the loan investor is paying the closing costs.

[emoflamingo]

Don't you have a contract to sell it at the agreed price? I'm really confused. I mean, I get that he was going to pay an extra $6,000 for the closing, but if he's not paying that closing cost, why would he drop the price $6,000? Did he inflate the cost of the house to compensate for the closing costs?

[MrsAxilla]

Jun 22, 2012 9:15:11 GMT -5 emoflamingo said:

Don't you have a contract to sell it at the agreed price? I'm really confused. I mean, I get that he was going to pay an extra $6,000 for the closing, but if he's not paying that closing cost, why would he drop the price $6,000? Did he inflate the cost of the house to compensate for the closing costs?

I'm confused, too. The house price wasn't inflated, and she did a lot of work we requested in our offer (like a new roof and a/c). I think it's really the same money to her.

[emoflamingo]

Well hell. If she's dropping the price and you aren't out more money, then good for you guys! I would ask your realtor what's up and see if there's more to the story. I'd be concerned that this would mess it up somehow but I'm paranoid about that sort of thing! (this is why my H deals with it lol.)

[ktzmoh]

I'm really confused too. Why would the seller drop the price? You have a contract for a certain price, and it stipulates that the seller pays closing, correct? Well even if there are no closing, the contract still stands at the sale price and the seller doesn't have to reduce the price. I'd be highly suspicious because I'm paranoid. But no one in their right mind would just give away 6k