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

To calculate the total cash due from the buyer at closing, subtract the existing loan amount and second note and deed of trust from the purchase price, subtract the remaining balance of the first loan, and add the buyer's closing costs.

Step-by-step explanation:

To calculate the total cash due from the buyer at closing, we need to consider the purchase price, the existing loan amount, the second note and deed of trust, and the buyer's closing costs. First, we subtract the existing loan amount of $98,000 and the second note and deed of trust of $30,000 from the purchase price of $150,000. This leaves us with $22,000. Then, we subtract the remaining balance of the first loan, which is $89,800. Finally, we add the buyer's closing costs of $2,500 to get the total cash due from the buyer at closing, which is $35,500.

Answer 2

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

Step-by-step 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.