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dman6666
Guest
I'm selling a home FSBO in Florida. I also have representation by an attorney. My question is the last paragraph, but, the whole scenario may be helpful in providing any advice.
Background: I recently received a verbal offer from a prospective buyer for an amount that I am happy with. The buyer has since contacted a lawyer to prepare an offer letter based on our verbal agreement. During this time it came to my attention that the Buyer is using a mortgage broker and using FHA financing.
I have been informed by my attorney (and my own research) that there are additional fees paid by the seller when FHA Financing is used, AKA Junk fees. I was advised to renegotiate the price of the house a bit higher to cover those fees. We guessed at 2% of the purchase price but the buyer was not willing to go that high.
After some negotiating, and running around, I asked the buyer to review her offer in writing so I could make my own decision. In the Contract for Sale and Purchase that the buyer delivered, there is a Rider which states under (a) Fees, prepayments: Seller shall pay tax service, underwriting, and document preparation fees required by the lender, and recording fees for assigning Purchaser's mortgage.
THE PROBLEM: There is no place in the contract where these FHA Seller fees are listed in dollar amounts or percentages, just the language above. I have been trying to get the buyer, her attorney, and/or her broaker to list those fees for the last 3 business days but to no avail.
Since that road is running me around in circles, I asked my attorney about putting a maximum dollar limit (whereby I would acknowledge the fees but limit the amount that I would pay). I was told that it may not be legal to put a "Maximum Dollar Limit" clause in regards to an FHA Loan, however, speaking to a independent loan broaker I am told that this (clause) is somewhat common?
It is QUITE possible that I have misunderstood either my lawyer or the broaker on this matter. I am certain that the best case for me would be to continue to push to get the FHA fees listed explicitly in the contract but the Buyer and/or their broaker says it's not possible prior to going to contract (I'm getting the runaround).
Thus, the question: Is it common practice to NOT list the FHA Fees in the Sale Contract? Is it proper/legal contract practice to allow a maximum dollar limit in regards to FHA Seller Paid fees if they are not listed?
I will continue to work with my attorney to settle this matter but would appreciate a 3rd opinion.
Background: I recently received a verbal offer from a prospective buyer for an amount that I am happy with. The buyer has since contacted a lawyer to prepare an offer letter based on our verbal agreement. During this time it came to my attention that the Buyer is using a mortgage broker and using FHA financing.
I have been informed by my attorney (and my own research) that there are additional fees paid by the seller when FHA Financing is used, AKA Junk fees. I was advised to renegotiate the price of the house a bit higher to cover those fees. We guessed at 2% of the purchase price but the buyer was not willing to go that high.
After some negotiating, and running around, I asked the buyer to review her offer in writing so I could make my own decision. In the Contract for Sale and Purchase that the buyer delivered, there is a Rider which states under (a) Fees, prepayments: Seller shall pay tax service, underwriting, and document preparation fees required by the lender, and recording fees for assigning Purchaser's mortgage.
THE PROBLEM: There is no place in the contract where these FHA Seller fees are listed in dollar amounts or percentages, just the language above. I have been trying to get the buyer, her attorney, and/or her broaker to list those fees for the last 3 business days but to no avail.
Since that road is running me around in circles, I asked my attorney about putting a maximum dollar limit (whereby I would acknowledge the fees but limit the amount that I would pay). I was told that it may not be legal to put a "Maximum Dollar Limit" clause in regards to an FHA Loan, however, speaking to a independent loan broaker I am told that this (clause) is somewhat common?
It is QUITE possible that I have misunderstood either my lawyer or the broaker on this matter. I am certain that the best case for me would be to continue to push to get the FHA fees listed explicitly in the contract but the Buyer and/or their broaker says it's not possible prior to going to contract (I'm getting the runaround).
Thus, the question: Is it common practice to NOT list the FHA Fees in the Sale Contract? Is it proper/legal contract practice to allow a maximum dollar limit in regards to FHA Seller Paid fees if they are not listed?
I will continue to work with my attorney to settle this matter but would appreciate a 3rd opinion.