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From: wtm@ihuxb.UUCP (Bill Matern)
Newsgroups: net.legal
Subject: Mortgages
Message-ID: <649@ihuxb.UUCP>
Date: Mon, 7-May-84 13:56:35 EDT
Article-I.D.: ihuxb.649
Posted: Mon May  7 13:56:35 1984
Date-Received: Tue, 8-May-84 00:35:07 EDT
Organization: AT&T Bell Labs, Naperville, IL
Lines: 13

Is it legal to do the following when buying a house.

The buyer and seller agree at a price of $50,000 (for instance).
The buyer needs to come up with 10,000 for down payment/points/etc.
but only has 5,000.  Can the seller give(lend or whatever you want to
call it) the buyer 5,000 to meet the down payment and sell the house
for 55,000??  The mortgage would be higher but the buyer can get the
house with out a lot of down payment money.  (the seller would recoupe
the 5,000 when the buyer would get the loan.)  Is this legal and if
so what problems can crop up??

				Bill Matern (In search of a house)
				ihnp4!ihuxb!wtm