Seller Never Paid Money Promised

What is the name of your state? CO

We bought a townhome 2 years ago, our first purchase. We were really green in the subject. When we bought the townhome, the seller agreed to pay $5000 to us on the sale. In all the confusion of buying the house we forgot about it.

We just pulled out our contract yesterday and we ran across the promised $5000 in it that was never paid to us. Even though it has been 2 years since the closing of the house, are we still able to collect on this money? The contract is signed by both buyer and seller. Thanks!

[I AM ALWAYS LIABLE]

Originally Posted by joshnjoni

What is the name of your state? CO

We bought a townhome 2 years ago, our first purchase. We were really green in the subject. When we bought the townhome, the seller agreed to pay $5000 to us on the sale. In all the confusion of buying the house we forgot about it.

We just pulled out our contract yesterday and we ran across the promised $5000 in it that was never paid to us. Even though it has been 2 years since the closing of the house, are we still able to collect on this money? The contract is signed by both buyer and seller. Thanks!

My response:

Yes.

IAAL

[nextwife]

Have you carefully reviewed the closing statement to see if any ALLOWED credits were shown as a credit to you on the closing statement and actually offset the amount you needed to bring to closing?

Typically, seller paying CASH back is disallowed under most mortgage financing underwriting. Back in the 80s, HUD had a big foreclosure problem created by various clever schemes in which buyers were kicked back cash at closing, but couldn't really afford the inflated home. Anyway, after that, many lenders that used FNMA guidelines (I may have recalled some details iincorrectly) strictly limited how and how much in seller credits could be given if they were financing it.

[HomeGuru]

Yes, it may be possible that the money was already payed. Check your HUD=1.