We are buying a house in sacramento, california and our realtor told us that the house has a 2nd loan that we should pay out of pocket. We tried adding the 2nd loan to the purchase price of the house (to which our lender has already agreed) but the seller informed us that the 2nd loan should be paid on the side, meaning it cannot be added to the price of the home. Our lender then was a bit hesitant to give us a 2nd loan to cover for what the seller is asking for. Our lender informed us that the 1st loan should dissolve already the 2nd loan and stand as since the house has already foreclosed or is bank owned already. She also advised us that we shouldnt be paying for something that is not ours (the 2nd loan) and let the seller shoulder for the 2nd loan.
I called up my realtor and informed her that we are at a disadvantaged if we were to pay for the 2nd loan. For one, our lender told us, if we decide to make a loan just to pay for the 2nd loan of the seller, the same rules would be applied to my 2nd loan as to my 1st loan, meaning I would also be charged for whatever fees I incur for my 1st loan and applied to my 2nd loan. Second, my monthly mortgage will increase as well, since I would be paying 2 loans, both charged with the same interest rate.
Our realtor insist that we still need to pay the 2nd loan and “think about it as like we are paying for the closing costs ourselves” since we asked the seller to shoulder the closing costs. I was a bit shocked because I was thinking who the realtor is working for, us or the seller? Our realtor is the friend of the seller’s realtor and both work for the same company, which gave us the advantage since they made sure that our offer was the one presented to the bank.
We are 1st time home buyers so we are so confused. We have a lender who thinks and gives us sound advise, and a realtor who showed us a house that we love yet has some issues that we do not like. We do not want to give up the house and we are just waiting for the bank’s response. Is there a way to go around this thing? Need advise.