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From: rcd@opus.UUCP (Dick Dunn)
Newsgroups: net.legal
Subject: Re: Mortgages (some caveats)
Message-ID: <481@opus.UUCP>
Date: Wed, 16-May-84 03:23:49 EDT
Article-I.D.: opus.481
Posted: Wed May 16 03:23:49 1984
Date-Received: Fri, 18-May-84 07:35:32 EDT
References: <649@ihuxb.UUCP>
Organization: NBI, Boulder
Lines: 20

Question on 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...

Several people have noted that this is legal, perhaps common, but there may
be problems about outstanding loans to the buyer.

Another point to consider is that, even if you try to conceal the $5000
changing hands, the lender may find it important that the house appraise
out at $55K rather than $50K, which can get sticky.

If you're the seller, you'd best consider the situation carefully.  This
certainly isn't a good situation for the seller to take a second, for
example.
-- 
...A friend of the devil is a friend of mine.		Dick Dunn
{hao,ucbvax,allegra}!nbires!rcd				(303) 444-5710 x3086