New regulations & lack of clarity at closing means I lost $5000

[Tammy Richards]

Man, I am so mad.  I just purchased a 4 unit, in need of repairs.  The purchase and sale agreement stated seller would contribute up to $8000 closing costs.

Because the units are occupied, and because the closing was mid-month, I was expecting to receive @$4000 in security deposits for the current tenants, and $2000 in prorated rent amount.  The $4000 was to go right in the bank, in a separate account, as legally required.  The prorated rent of $2000 I was going to put into immediate repairs.

I was supposed to bring $1000 at closing, but an updated closing documents sent to me state I didn't need to bring money. Sweet... I thought....

However, at the closing, a discussion occurred around the new financing regulations, and that checks can't be passed, so that the security deposits and prorated rent had been "rolled into" loan.  As I was signing documents, I asked for clarification, and my realtor said something to the effect that they had gotten around this via my downpayment deposits held by my realtor.  I thought, naively,  that meant that I'd get a check for $5000 from my realtor (the amount they down payment).

My realtor all along has been saying "you can use prorated rent you'll get for repairs" so I know he was assuming I'd get the rent at closing.  I have purchased multi-units years ago, and that was what typically happened.  Therefore, there is nothing in the P & S agreement - about my receiving security deposit and prorated rent - only the statement that up to $8000 towards closing will be paid by my seller.

Now my realtor says that the security and prorated rent were included in the loan.... and in reviewing the paperwork, it looks  like I the seller contributed almost $8000 in closing costs.  So actually, the seller made a nice $5000 extra.  Which I ate.  

So now I have to put in $4000 to that separate account - leaving me with no money over the holidays, and no money to even start repairs. I'm seething mad.

Advice?  Other than I should have made absolutely freaking sure I understood what was happening at closing... I am kicking myself over that one.