Question

A property is sold for $150,000 with the buyer agrees to assume an existing loan of $98,000 and executing a second note and deed of trust to the seller for $30,000. The purchase contract states that the unpaid balance of any existing loan is approximate and at closing any differences shall be reflected in cash. If the buyers closing costs are $2,500 and the remaining balance of the first loan is $89,800, what is the total cash due from the buyer at closing?

Answer 1

Answer:

The total cash due from the buyer at closing is $ 32700.

Explanation:

The total cash due from the buyer at closing is given by the sum of: the cost of the property plus the closing cost, minus the remaining balance of the first loan minus the note and deed of trust. So, we have:

Total_Cash= 150000+2500-89800-30000

Total_Cash= $ 32700

The total cash due from the buyer at closing is $ 32700.