Can seller concession be used to pay down/pay off borrower liabilities/collections?
No. They can pay the customary closing costs commonly shown on the HUD-1. They can pay for expenses directly associated with the property. For example, a builder can offer a free upgrade. They cannot provide anything else such as: prepaying the HOA; pay utility bills into the future; pay payments on an existing mortgage; years supply of Omaha steaks, etc. Instead, they should reduce the price of the property.
