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.
Answer Submitted on Mon, Dec 11 2006
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