I have a property under contract and a buyer to buy the property. The seller has just informed me of a check from the insurance company she has for a new roof. It is a two-party check, written to her and the mortgage company. The roof is performing, though old, and the buyer is okay with the roof.
Can the seller endorse the check over to the mortgage company and as part of the sale, pay down the mortgage, and then reduce the price by the same amount to myself, and the buyer?
The buyer wants to close on the house and not have to wait on a new roof now, or for other approvals. If the loan is being paid off, the mortgage company would presumably not have an interest in whether the roof is replaced or not. How can I approach this?
I funded a deal with a similar scenario about a year ago - the title company maybe able to help with this - arranging the payoff and monies. Or just make a call to the mortgage company and explain exactly what is going on. Best guess is sign and send to mortgage company as normal and upon payoff the seller will receive a refund, probably around the same time the escrow money is returned.
Keep thinking and doing what your doing. You are gathering momentum. I feed off this stuff.
Travis -I appreciate the response about your experience - the seller has contacted the insurance company about the matter and, yes, they do have a form that too!
Frank - Momentum is what its all about. Thank you.