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FSBO - Seller & FHA Fee's - Clarification Needed

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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.



My attorney is doing OK. I could use a little more attention/time but there's only so much the attorney can do when the other side isn't cooperating, and it's plain to see the problems on their side. He did answer my question about the maximum dollar limit. I was working with his paralegal/secretary and that's where the misunderstanding arrose.

The main problem / idiot was the Buyers Mortgage Broker (and the buyer is just inexperienced and maybe a bit too trusting). The broker wouldn't give her the closing costs IN WRITING. She wanted to believe him that the costs were going to be <$750. That's not even 1%... nice, but, doubtful.

The broker kept telling her he couldn't get the actual costs until the contract was signed. I told her I wouldn't sign until the lenders fees are in writing, and they didn't have to be the actual costs, just the MAXIMUM costs. She was caught in the middle.

The buyer still wants to close asap. She also realized her broker (not her attorney) was screwing this up. She went to a new bank. She has a good faith estimate now and is ready to go... but we lost a week in the process of going back and forth. Mostly because she didn't know who to believe.

Hopefully tomorrow I can say I've gone to contract. Then I can deal with all the other hassles.

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