Would I violate any law by providing seller financing for on

Gary · Joined: 07 Feb 2008 Posts: 1 1.38 Dollars($)

My asking price for a house (a flipper) that I'm selling is $94,500. Th buyers have offered $90,000, and me paying 3% closing. The buyers are getting a conventional loan. I'm assuming their loan closing costs are around $5,000.

Would it be a violation of any law to offer to seller finance for sixty days at $92,000. Have the buyers sign a promissory note to pay the loan in sixty days, giving them time to refinance with closing costs in the $300 to $400 range. They're already approved for $90, 000 with their bank.

This would save them $2500, and I would receive an extra $2000.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Gary,

Welcome to the forum.

Law varies from state to state. It actually happens that seller pays the closing cost on behalf of the buyer but I don't know is it legal in your state or not? I think you should consult with an attorney.

Thanks.
Larry

jbarto65 · Joined: 04 Nov 2007 Posts: 627 0.00 Dollars($)

What state are you from? You will get more information if you let us know what state you are from.

Guest 0.10 Dollars($)

I don't know but would you really call this seller financing? Anyway, it's goofd that the buyers have been approved for the loan, so there won't be worries regarding the money. But I feel you should talk to an attorney about the laws. I'm not aware of such laws.

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