The seller has an FHA loan. Why do you care?
Recently, I listed an Aliso Viejo condo. The seller had FHA financing. As the listing agent, why would I care that the seller has an FHA loan on the property?
There was an FHA rule in place at the time of the loan that when the property sells, the seller must pay the full month interest payment no matter what day of the month escrow closes. In the case of my nice condo seller, the interest payment amounted to $805.91.
We received an offer on the property. A seller counter offer was written with a provision that should escrow close after the last day of the month and the delay is not the fault of the seller, the buyer agrees that the buyer shall pay the interest charge for the month.
The lender said they'd easily close on time and likely close a couple of days early. Easy, right? Well....the lender didn't meet the timeline. The good news was that the seller wasn't stuck paying an extra month of interest.
Anticipating issues that may arise is important and in this case, it saved the seller from taking an $805.91 hit.
JILL MURTY, Realtor | 949.355.5321
Contact me today to assist with your real estate needs.