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Maverick
Maverick, Lawyer
Category: Real Estate Law
Satisfied Customers: 6423
Experience:  20 years professional experience
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My sister and I are selling my dad' my sister and I are

Customer Question

My sister and I are selling my dad'
JA: What state are you in? It matters because laws vary by location.
Customer: my sister and I are selling my dads home in the state of nj. Question regarding the FHA Amendatory Clause and Real Estate Certification. We lowered the price by 5,000 and this form still has not been updated by the lender. They had not received the addendum regarding the reduction of price. I am waiting for the certification to reflect the new purchase price. The lender has not updated the commitment either to reflect this change. I know that all items must be changed and brought up to the most current information. I am waiting for this change before my sister and I sign. The buyer/realtor is telling her atty that the bank wants this signed at the 720,000.Please advise. Thanks
JA: Has any paperwork been filed?
Customer: as far as?
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 1 month ago.
Category: Real Estate Law
Customer: replied 1 month ago.
the purchase price is 715,000 noq
Expert:  Maverick replied 1 month ago.

Welcome to Just Answer! My name is***** give me a few minutes to review your inquiry. Thank you for your patience.

Expert:  Maverick replied 1 month ago.

Here is the form that you are speaking of. Note the language in the middle:

Note: The dollar amount to be inserted in the amendatory caluse is the sales price as stated in the contract. If the borrower and seller agree to adjust the sales price in response to an appraised value that is less than the sales price, a new amendatory clause is not required. However, the loan application package must include the original sales contract with the same price as shown on the amendatory clause, along with the revised or amended sales contract.

So, it appears that a new form is not required so long as a copy of the original sales contract [the one including the 720 price and a copy of the amended contract [the one including the 715 price] are both included included in the loan application package.

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Customer: replied 1 month ago.
Well I know as a lender that once the amended contract is received by the bank the commitment and any disclosures necessary to be signed will all reflect the change. They would then sent out the new form reflecting the change.
Expert:  Maverick replied 1 month ago.

If you need more comfort on signing the form, you might want to see if putting 715 in the space next to where 720 is written on the form and have everyone initial and date the change. I am not sure what your follow-up question is. Please clarify.

Customer: replied 1 month ago.
What I am saying is that a new FHA Amendatory Clause and cert will be generated and sent to the borrower again, once the lender is entering the 715,000 as purchase price. They will be sending this new form to the buyer for signing to update the file.
So we can wait till such time as that all happens? Correct?
Expert:  Maverick replied 1 month ago.

Well, I think what I am saying is that the language on the form that I quoted for you above is actually saying the exact opposite. It is saying that a new Amendatory Clause form is NOT required simply because of a price change so long as the loan application package includes the original contract AND the new contract with the 715 price shown. In other words, it is not necessary to wait for a new form and you can legally sign this one.

You may want to call the lender and confirm whether it intends to send over a new form with the 715 price for signature; because it appears that the law does not require that as a prerequisite to signing so long as both the new and old contracts are included in the loan package.

Customer: replied 1 month ago.
Thank you for your help
Expert:  Maverick replied 1 month ago.

You are welcome. Thank you for using Just Answer.