So I have a property in escrow that needs some repairs. The buyers lender will only allow a $15k credit. We need to get him another $15ish and we can't just reduce the sale price (apparently the is a little cash poor). Thought about increasing the commission and have the agents give him the money but they said the lender would view it the same. Anyone ever give cash to a buyer outside of escrow? What is the mechanism? Risks? Thanks!!!
Make the repairs.
People do things outside of escrow all the time — likely violating lender terms — but this way you actually get the necessary improvements.
Thanks Tom ... if it was a water heater or something simple like that. But the buyer wants us to replace an old septic system for some reason. It works fine ... it is just old. we don't to start a repair and run into a bunch of other problems. Someone suggested holding funds in escrow account after COE to be paid directly to a contractor for the repair... hopefully that would not violate and lender terms... and would free us of any liability if there are additional unforeseen costs.