Do you think this is a concession?

[Tim Schneider]

Homeowner is in foreclosure and is selling to related party for the martgage payoff amount, not an arm's length. Offer states this if buyer can not obtain a loan on the property, seller must repay $zzz that was used to reinstate the loan on the home. Since it has already been paid, is the $zzz a consession?

 

[Lee Lansford]

Homeowner is in foreclosure and is selling to related party for the martgage payoff amount, not an arm's length. Offer states this if buyer can not obtain a loan on the property, seller must repay $zzz that was used to reinstate the loan on the home. Since it has already been paid, is the $zzz a consession?

There's no money going to the purchaser, right?

Thus, no "concession" to the buyer!

I'm guessing that you are communicating the appraisal with a current Fannie form. Read the definition of Market Value and the asterisk section that provides instructions to the appraiser as to how the appraiser is to consider concessions to the BUYER.

 

[Tim Schneider]

10-4, thanks Lee, got it now.

 

[Charles Knutson]

It sounds like the buyer paid $zzz to have the opportunity to buy the property -- if the lien holder didn't have a fit, the purchase price should be the current loan payoff plus $zzz.

The $zzz is not a seller concession, but part of the buyer's down payment.