Cash At Loan Closing

We have a buyer for our home. He wants us to raise the selling price of the home by $55,000 dollars and show that amount in the closing costs. He has been qualified by the bank for our price + $55,000 - that way he can have some cash for himself. We are ok with this offer as long as we get the price we want. Can we do this?

1 Answer

The buyer cannot do this. At a closing, the buyer is not allowed legally to get any money back. If the house is worth $55,000 more than the selling price, he can add a second mortgage after he closes, but cannot do this at the closing.

Also, you need to be careful in this situation for tax purposes. You would want to talk with an accountant. It sounds like his lender is trying to do something illegal.