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Originally Posted by orcina_orca  Now my question is, has anyone heard of the term "set aside amount" (which WF insists is a new term that they've just started using recently)? Can I sell the house, say, tomorrow at the current market price and not be held responsible for that $110K difference? |
I ran into this years ago with a house I bought while I was in college. The City of Philadelphia offered me a $40k grant if I bought a town-house, renovated it and resided in the home for 15 years. If I sold the house prematurely then I was obligated to get a release from them allowing me to sell the house and I needed to pay back the $40k out of the sale proceeds. I assume you will see the same thing here. The bank will put a lien on the house for $110,000 and will probably even add similar language to the loan.
There is no reason I can see why the bank would not make every reasonable effort to make you responsible for that $110k in the event you sell the house prematurely and the sale price is not high enough to cover the debt.