Are buyers required to repay seller concession?

[nextwife]

Originally Posted by seniorjudge

I think you are correct; but who is (are?) the guilty party (parties?) here.

Both of them, I'd say.

Agreed. The lender had the right to know BEFORE they funded, whether a new debt obligation on the part of the buyer was being created. This buyer SHOULD have brought it up at the closing table and asked their closer, innocently of course, if this little "deal" was ok or a problem for the lender. Betcha the lender would not have been happy.

They both LIED in the HUD!

[rabo119]

Originally Posted by nextwife

Agreed. The lender had the right to know BEFORE they funded, whether a new debt obligation on the part of the buyer was being created. This buyer SHOULD have brought it up at the closing table and asked their closer, innocently of course, if this little "deal" was ok or a problem for the lender. Betcha the lender would not have been happy.

They both LIED in the HUD!

The buyer did not understand what exactly this was promissory note was for. When he signed the HUD, he did not believe this promissory note he was pushed into signing the night before, was something that was necessary to finance the home.
It was not until after reviewing documents following the closing, that the buyer realized this was a portion of the seller concession.

Let me ask,
Is it legal for an individual, not a debt collector, to demand that a debt which has not been incurred yet, be paid for in advance with post-dated checks?
Is it legal for a notary to notarize a document which she knows is a part of a fraud and a document she does have an interest in happening?

[FlyingRon]

Originally Posted by rabo119

The buyer did not understand what exactly this was promissory note was for. When he signed the HUD, he did not believe this promissory note he was pushed into signing the night before, was something that was necessary to finance the home.
It was not until after reviewing documents following the closing, that the buyer realized this was a portion of the seller concession.

It doesn't matter if it was a seller concession or condition or not. It's a monetary agreement between the buyer and seller and needs to have been reflected in the settlement.

Let me ask,
Is it legal for an individual, not a debt collector, to demand that a debt which has not been incurred yet, be paid for in advance with post-dated checks?
Is it legal for a notary to notarize a document which she knows is a part of a fraud and a document she does have an interest in happening?

Notary's don't deal with content, just certification of the signatures.

What does a "debt collector" have to do with it. Debt collectors are actually under MORE stringement requirements not less.

[VeronicaLodge]

its legal for anyone to demand anything, i think what you are asking is if he demanded it and wasnt entitled to it could you have said no and forced him to go through with the sale, probably, but thats moot cuz you signed it.

[rabo119]

Originally Posted by VeronicaLodge

its legal for anyone to demand anything, i think what you are asking is if he demanded it and wasnt entitled to it could you have said no and forced him to go through with the sale, probably, but thats moot cuz you signed it.

I have been in contact with my attorney throughout this whole home purchase mess. I did not have a chance to tell him about the late night visit until Friday. Because of all the different reactions I have been receiving here and from others, I made an emergency appointment and saw him today. He has advised me to not say anymore about this. I'm a blabber mouth, but I'm going to try to hold to that.

I would like to say that at least for me this is an awful situation. The landlord/seller and I have know each other for about 20 years. Our families have always been close. I guess those post-dated checks were more important.

Thank you all for your responses. This has really helped me to understand this a little better.

[VeronicaLodge]

that really sucks, sorry. I know you aren't going to say anything more about it on advice of your counsel but when its all over with please come back and let us know what happened. good luck.