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Mortgage Company Wants Document |
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We made an offer on my husband's grandmother's house to the heirs when she passed away. Because the house was in bad shape we typed up an agreed purchase price and told them that we would be able to get the loan once we made the house livable and moved in. Because of the rennovations that we have made on the house, the value of the house is now more than the amount we would like to have the loan for. The mortgage company is asking for an addendum to the loan saying that the heirs are "gifting" the diffence to us even though we paid for all the renovations on the house since it was in such bad shape. I have never heard of this and since we paid for this we do not feel that this is legally correct. Is this acceptable for the mortgage company to ask for this? |
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You may have paid for all the renovations, but you didn't own the property. What you did became part of the real estate and is owned by the estate. The mortgage company doesn't want to lend money on the house unless it's sure there will be no other claims against it. Or maybe they want you to officially own the improvements so they'll count as part of your down payment. At any rate, I don't see any harm in getting the document they want. It's their ball and their bat and if you don't play by their rules, they might just walk away. |
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Edith
Originally published on August 21, 2008 |
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