Legal Question in Real Estate Law in Rhode Island
Legality of non-conventional mortgage process
An investor is interested in purchasing my home. The appraisal came in higher than my asking price. The buyer wants to mortgage for the appraisal amount; I receive my asking price and at closing he receives the remaining balance for closing costs and repairs to the second floor, which has been added (in detail) to an addendum to be signed by seller and buyer. Is this a legal transaction? Thank you for your time and considerations.
1 Answer from Attorneys
Re: Legality of non-conventional mortgage process
Unfortunately, much more information is needed to fully and properly answer your question. Most important I will need to read the P&S agreement as well as any addendum. However, from the sound of your question it doesn�t pass the "smell" test, this is not a legal standard but is simply based upon a gut reaction by an experienced lawyer who is uncomfortable recommending that you proceed with a deal that is not accurately disclosed to the Mortgage company.
You need to speak with lawyer BEFORE you sign any documents which may be considered fraud at a later date like if there is a foreclosure several years from now
You may contact me Jules J. D'Alessandro (401) 353-0440 or my associate Deborah D'Alessandro (401) 353-3888. Deb handles all of our residential real estate transactions
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